Credit amount will determine your Social Security payment

Your annual earnings and the type of work you do affect eligibility for retirement and disability benefits.

Social Security credits are based on the amount of your earnings. The agency uses your work history to determine your eligibility for retirement or disability benefits or your family's eligibility for survivors benefits when you die.

In 2012, you will receive one credit for each $1,130 of earnings, up to the maximum of four credits per year. Each year the amount of earnings needed for credits goes up slightly, as average earnings levels increase. The credits you earn remain on your Social Security record even if you change jobs or have no earnings for a while.

Special rules may apply

Special rules for earning Social Security coverage apply to certain types of work.

If you are self-employed, you earn Social Security credits the same way employees do - one credit for each $1,130 in the net earnings but no more than four credits per year. Special rules apply if you have net annual earnings of less than $400. For more information, you can request from Social Security its publication No. 05-10022, "If You Are Self-Employed."

If you are in the military, you earn Social Security credits the same way civilian employees do. You also may receive additional earnings credits under certain conditions. For more information, you should ask for publication No. 05-10017, "Military Service and Social Security."

The agency also has special rules about how you earn retirement or disability credits for certain other kinds of work.

The rules apply, for example, to employment such as domestic work, farm work and work for a church or a church-affiliated organization that does not pay Social Security taxes. You should call or visit a Social Security office if you have any questions about how you earn credits in your particular job or line of work.

Not all work counts

Not all employees work in jobs that are covered by Social Security. Some of these employees are:

n Most federal employees hired before 1984 (since Jan. 1, 1983, all federal employees have paid the Medicare hospital insurance part of Social Security tax);

n Railroad employees with more than 10 years of service;

n Employees of some state and local governments that chose not to participate in Social Security;

n Children younger than age 21 who do household chores for a parent (except a child age 18 or older who works in the parents' business).

Ensure accurate records

Each year your employer sends a copy of your W-2 wage and tax statement to Social Security. The agency then compares your name and Social Security number on the W-2 with its records.

When Social Security finds your name and number, your earnings shown on the W-2 are recorded on your lifelong earnings record. Your lifelong earnings record is what the agency uses to figure whether you can get future benefits, as well as the benefit amount.

It is critical that your name and Social Security number on your Social Security card agree with your employer's payroll records and W-2. If your Social Security card is not correct, you must visit the Social Security Las Vegas Card Center at 1250 S. Buffalo Drive, Suite 100.

It is up to you to make sure your records are correct

The Social Security Administration website at www.socialsecurity.gov is a valuable resource for information about all Social Security programs.