How does Social Security work credits work for the self-employed?

[oboero2]

How does the 1 credit of Social Security work credits per quarter work for the self-employed?

For example, in 2023, you receive 1 credit for each $1,640 of earnings, up to the maximum of 4 credits per year. But if you are self-employed, you pay the self-employment tax only once when you file tax in April. Does it mean you only get 1 Social Security work credits per year?

[Bsch4477]

If you are self-employed, you earn Social Security credits the same way employees do (1 credit for each $1,640 in net earnings, but no more than 4 credits per year). Special rules apply if you have net annual earnings of less than $400. For more information, read If You Are Self-Employed (Publication No. 05-10022).

[oboero2]

So to receive the credits each quarter , must you also pay taxes quarterly?

[Bsch4477]

No, it will be based on your annual income. 

[oboero2]

So if the annual income divided by 4 is more than $1,640, then you get the 4 credits per year?

[xmasbaby0]

@oboero2 Each credit for Social Security requires that you earn at least $1640.  So, $1640 = 1 credit; $3280 = 2 credits,  $3920 = 3 credits; $6560 or more per year = 4 credits.

https://www.ssa.gov/pubs/EN-05-10072.pdf

[Hal_Al]

Q.  So if the annual net* income  divided by 4 is more than $1,640, then you get the 4 credits per year?

A.  Yes. 

*after expenses and the deduction for half the Self employment tax

[xmasbaby0]

From Social Security:

In 2023, you receive 1 credit for each $1,640 of earnings, up to the maximum of 4 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 record even if you change jobs or have no earnings for a while. Special rules for som

[dmertz]

For a sole proprietor reporting on Schedule C, the number of credits is determined from the amount on line 6 of Schedule SE.