40 Quarters

Definition

Lawful permanent residents who have worked or can be credited with 40 qualifying calendar work quarters under the Social Security Act are potentially eligible to receive public benefits. The law also covers quarters credited to a parent (while the noncitizen was under 18) or by a spouse (during the marriage if the noncitizen remains married to the spouse or the marriage ended by the death of the spouse) and may be credited to that applicant in determining the number of qualifying quarters. For determining 40 Work Quarters, federal means-tested public benefits include CalWORKs, Medi-Cal, SSI and CalFresh. The 40 work quarter rule is not applied to Medi-Cal.

Beginning with the First Quarter of 1997, no credit of qualifying employment is countable if the individual who earned it received any federal means-tested public benefits during the quarter for which it was credited.

Rules to Determine 40 Quarters

Social Security quarters are earned by working at a job or as a self-employed individual. The SSA monitors the number of quarters worked. Refer to Procedures to Request 40 Quarters Information to request a report of work quarters. The following information is used to determine work quarters.

Lag Quarters

Depending upon when the request to SSA for work quarters information is submitted, the 40 quarter data report will not contain the current and/or the preceding calendar year information due to the normal processing cycle of employer provided information. These current year quarters and preceding year quarters which do not show on the report are called Lag Quarters.

Noncovered Earnings

Noncovered earnings are earnings for which Social Security taxes were not withheld (, earnings of certain public employees or earnings paid in cash). Therefore, the credits for these earnings do NOT appear on the SSA work quarter report.

If an applicant/recipient is claiming earnings from non-covered employment, the credits for those earnings can be counted, if satisfactory evidence is provided. Acceptable evidence includes:

Taxpayer’s actual copy of W-2 or W-2C forms, or
A copy of the applicant’s federal or state income tax return (with photocopy of W-2 or W-2C attached), or
Employer-prepared wage statements.

Current Year - Computation of Credits of Qualifying Employment

A current year’s credit for a quarter which has ended may be used in the 40 credits of qualifying employment computation. DO NOT COUNT CREDITS FOR CALENDAR QUARTERS THAT HAVE NOT ENDED, even if the individual has sufficient earnings to qualify for the credit. Use the current year amount as the divisor to determine the number of credits of qualifying employment available, always rounding down the result.

To determine the number of credits of qualifying employment to be counted for the current year, use the LESSER of:

The number of quarters that have ended for the current year, OR
The number of credits of qualifying employment available based on total earnings divided by amount needed per credit.

Example 1Example 1 An applicant applies in May 2004. He was laid off in April 2004 with year to date earnings of $6000. Based on earnings ($6000 divided by $900 [amount needed for each credit for 2004] = 6.67, he is entitled to 4 credits. Since only one quarter has ended (i.e., January through March 2004), only one of the credits can be counted for 2004.

Establishing Credits/Quarters - 1978 through current year

For 1978 and later, credits are based solely on the total yearly amount of earnings. All types of earnings follow this rule. The amount of earnings needed to earn a credit increases and is different for each year. Refer to "Current Year - Computation of Credits of Qualifying Employment” above for additional information.

For 1978 through 2006, the amount of earnings needed for each credit is:

Year	Amount Needed for Each Credit	Year	Amount Needed for Each Credit	Year	Amount Needed for Each Credit
		1997	$670***	1987	$460
2006	$970***	1996	$640	1986	$440
2005	$920***	1995	$630	1985	$410
2004	$900***	1994	$620	1984	$390
2003	$890***	1993	$590	1983	$370
2002	$870***	1992	$570	1982	$340
2001	$830***	1991	$540	1981	$310
2000	$780***	1990	$520	1980	$290
1999	$740***	1989	$500	1979	$260
1998	$700***	1988	$470	1978	$250

Maximum of 4 credits per calendar year

*** Beginning in 1997, any credit CANNOT be counted if the individual who earned it received any federal means tested public benefit during the quarter for which it was credited.

Establishing Credits - 1977 and earlier years

For 1977 and earlier years, an individual earned:

One credit for each calendar quarter in which an individual was paid $50 or more in wages (including agricultural wages for 1951-1955),
Four credits for each taxable year in which an individual’s net earnings from SELF-EMPLOYMENT were $400 or more, and/or
One credit for each $100 (limited to a total of 4 yearly) of agricultural wages paid during the year for the years from 1955 through 1977.

Combining Credits with Spouse/Parent(s)

Social Security credits (formerly called “quarters of coverage”) are earned by working at a job or as a self-employed individual. Each individual can only be credited with four (4) credits of qualifying employment per year based on their OWN employment.

CalFresh - The individual can use credits of qualifying employment earned by:

Their current spouse (including those individuals cohabiting and holding themselves out to the community as husband and wife by representing themselves as such to relatives, friends, neighbors or tradespeople) DURING the spousal relationship.
Their former spouse if the marriage ended by death, but only for those quarters earned during the marriage.
Their natural, step or adopted parent(s) while they were under 18 years of age.
An adopted child may use the quarters of his adopted parents after the adoption and those of his birth parents prior to the adoption.
A step-parent’s credits can be used by the step-child, provided the step-parent relationship still exists. The death of the step-parent does not terminate the relationship. Upon divorce, the step-parent relationship ceases to exist.

Example 2 Example 2 A noncitizen “qualified” couple with one noncitizen “qualified” child (age 8) and one citizen child (age 5) apply for CalFresh in January 2006. They have lived in the United States for the last 7 years. The husband has worked for the last 7 years earning $8000 per year and his wife has worked part-time for the last 4 years earning $2000 per year.

Computation of the credits earned by each individual is as follows:

Year	Husband	Wife
2005	$8000 divided by $640 = 12.5 4 credits maximum per year	$2000 divided by $640 = 3.13 Rounded down to 3 credits
2004	$8000 divided by $630 = 12.7 4 credits maximum per year	$2000 divided by $630 = 3.17 Rounded down to 3 credits
2003	$8000 divided by $620 = 12.9 4 credits maximum per year	$2000 divided by $620 = 3.23 Rounded down to 3 credits
2002	$8000 divided by $590 = 13.5 4 credits maximum per year	$2000 divided by $590 = 3.38 Rounded down to 3 credits
2001	$8000 divided by $570 = 14.0 4 credits maximum per year	N/A
2000	$8000 divided by $540 = 14.8 4 credits maximum per year	N/A
1999	$8000 divided by $520 = 15.3 4 credits maximum per year	N/A
Total	4 credits per year times 7 years = 28 credits total	3 credits per year times 4 years = 12 credits total

Both noncitizen “qualified” parents have the required 40 credits. The husband has his 28 credits plus his wife’s 12 credits = 40 credits and the wife has her 12 credits plus her husband’s 28 credits = 40 credits. Therefore, the noncitizen “qualified” parents are federally eligible for CalFresh with the children. If the parents did not have the required 40 credits, then only the children could receive federal CalFresh, if otherwise eligible. The noncitizen parents would be eligible for the CFAP.

Note: Beginning 1/97, no qualifying quarter can be credited toward the 40 quarter requirement if a benefit from a federal means-tested program was received in that quarter.

Example of Qualifying Employment

Applicant earned $4500 in July-August 2004 and is credited by Social Security with 4 credits (quarters) of qualifying employment for the year. No other income is earned for the year. This individual receives public assistance in September through December 2004. The credit for the third quarter (July through September) and fourth quarter (October through December) CANNOT be counted due to the receipt of public assistance during these quarters. However, the credit for the first quarter (January through March) and second quarter (April through June) can be counted since he/she received no public assistance during these quarters. Credits of qualifying employment earned PRIOR to 1997 count, whether or not the individual received any federal means-tested public benefits during the quarter for which they were credited.

Procedures to Request 40 Quarters Information

The SSA has an automated system that provides information on qualifying quarters and is the agency that provides verification of qualifying quarters. The SSA provides a “Quarter of Coverage History” report for those individuals for whom it was requested. The report shows a star * in any quarter credited (i.e., the individual met the earnings requirement). At the top of the report is a total of credits credited through 1996 and a total of credits credited after 1996. Have the 40 Quarter report scanned into the Imaging system. Use the following table to request the 40 quarter data:

If there is...	And the person is an...	Then...
An alien number,	Applicant,	A 40-quarter report is automatically generated in CalSAWS through an interface system with IEVS. Refer to the Search for IEVS Applicant Reports in the CalSAWS Help for access instructions.
An alien number,	New applicant member or a current recipient	The EW must: Enter the alien number for the individual USCIS. A 40-quarter report is generated in CalSAWS through an interface system with IEVS when an application is taken to add a new person. However if an IEVS report is NOT received, the EW can do a Forced Add Transaction to MEDS to generate an IEVS report which includes the 40-quarter data. Refer to Send a Forced Add Transaction to MEDs in the CalSAWS Help for instructions.
No alien number,	A “Request for Meds Terminal Operator Action” (SCD 1296) must be submitted to request an AP20/25 transaction. Complete the SCD 1296 and for a:
	Applicant or Recipient,	Enter all 8s for the alien number. This provides the 40 quarter report and an IEVS report on wages and UI/DI only.
	Non AU/Household Members,	Enter all 9s for the alien number. This provides the 40 quarter report and a complete IEVS report.

Processing the Report

Process the work quarter report when received according to this table:

If...	Then...
The existing SSA records support the individual’s claim of sufficient credits of qualifying employment,	The noncitizen and any other noncitizens whose eligibility is contingent on this individual having the 40 credits of qualifying employment meet the “Exception Criteria” and are eligible for federal public benefits.
The existing SSA records do NOT support the individual’s claim of sufficient credits of qualifying employment, but the applicant/recipient believes the information provided by SSA is incomplete or inaccurate,	The noncitizen and any other noncitizens whose eligibility is contingent on this individual having the 40 credits of qualifying employment are not eligible for Federal Benefits. Explore eligibility for State Benefits (i.e., CFAP, State CalWORKs, etc.). Advise the client of the appeal procedure available through the Social Security Administration (SSA). SSA will assist the individual to determine if such credits can be established and provide them with proof that the number of credits of qualifying employment is under review.
The existing SSA records do NOT support the individual’s claim of sufficient credits of qualifying employment, but the applicant believes the information provided by SSA is incomplete or inaccurate due to missing Lag Quarters or non-covered earnings,	Have the noncitizen provide: EMPLOYER-PREPARED wage statements W-2 or W-2c, or Internal Revenue Service copy of the income tax return. Refer to Example of Qualifying Employment for information on how to determine credits of qualifying employment based on reported earnings. Add the number of credits determined countable from lag quarters or non-covered employment to the number of credits reported on the work quarter report. If the noncitizen then has the required 40 credits, the noncitizen and any other noncitizens whose eligibility is contingent on this individual having the 40 credits of qualifying employment are eligible for federal benefits. Set an alert to request a new work quarter report at the next recertification, if appropriate. If the noncitizen then does NOT have the required 40 credits of qualifying employment, or cannot provide verification of the Lag Quarters or non-covered earnings, see the following box. Explore eligibility for State Benefits (i.e., CFAP, State CalWORKs, etc.).
The final determination from SSA indicates that the individual (in combination with his/her spouse and/or parent(s)) has the required 40 credits of qualifying employment,	The noncitizen and any other noncitizens whose eligibility is contingent on this individual having the 40 credits of qualifying employment are eligible (if otherwise eligible) for federal benefits. Change the individual(s) from CFAP or State CalWORKs to federal CalFresh or federal CalWORKs.
The final determination from SSA indicates that the individual (in combination with his/her spouse and/or parent(s)) does NOT have the required 40 credits of qualifying employment,	No action required. Person remains on CFAP/State CalWORKs.