Social Security remains a cornerstone of retirement for millions of Americans, but not everyone will qualify for benefits. Some workers never meet eligibility requirements, while others find their checks reduced or withheld for reasons unrelated to their income history.
If you might fall into one of these groups, the key is to act early. Review your earnings record, ensure your taxes are filed correctly, and resolve any issues with the Social Security Administration (SSA) or other relevant agencies before you retire.
1. Workers Who Don’t Meet the 40-Credit Rule
To qualify for retirement benefits, you typically need 40 work credits. In 2025, one credit is earned for every $1,810 in covered earnings, up to a maximum of four credits per year after $7,240. Anyone born in 1929 or later must have all 40 credits to be fully insured for retirement.
People who take long breaks from work—such as stay-at-home caregivers, part-time employees, or recent immigrants—may not reach the credit threshold. However, if you’ve worked both in the U.S. and another country, a Totalization Agreement may allow you to combine credits for a partial benefit.
Create or log in to your my Social Security account to check your earnings record. If you’re short of 40 credits, you can still qualify later by working additional covered years or through Totalization if applicable.
Tip: Always verify your reported earnings each year. Mistakes on your record can reduce or delay your benefits.
2. Debtors Whose Benefits May Be Withheld
Social Security checks are generally protected from most creditors, but certain debts allow the government to take a portion of your payments. The SSA can withhold funds for child support, alimony, or restitution under Section 459 of the Social Security Act. The IRS may also levy up to 15% of your monthly payment for unpaid federal taxes.
For other federal debts—such as defaulted student loans—the Treasury Offset Program (TOP) can deduct up to 15% of your benefit. However, you must still receive at least $750 per month.
Although the Education Department paused student loan offsets in mid-2025, the legal authority remains. It’s best to resolve defaults early by entering a repayment or rehabilitation plan.
- Contact your state’s enforcement office if you owe child support or alimony.
- Work with the IRS to establish an installment payment plan for tax debts.
- For defaulted student loans, call the Default Resolution Group to enroll in a repayment or forgiveness program.
3. Americans Living in Restricted Countries
U.S. citizens can receive Social Security payments in most countries, but there are exceptions. The Treasury Department prohibits benefit payments to anyone living in Cuba or North Korea. Benefits are held until you move to a country where payments are permitted. Non-citizens who reside in those countries during that time forfeit their payments entirely.
Additionally, some nations restrict payments unless you meet specific requirements. Before moving abroad, use the SSA’s Payments Abroad tool to verify eligibility.
Plan ahead: If you’re relocating, confirm your destination’s payment rules, arrange direct deposit to a U.S.-approved bank, and keep travel documentation to ensure smooth resumption of payments if necessary.
4. Incarcerated Individuals
Social Security retirement and disability benefits are suspended for individuals imprisoned for more than 30 consecutive days following a conviction. Payments do not accrue during incarceration and cannot be sent to prison accounts. In most cases, benefits can resume the month after release, but you must contact the SSA to restart them.
If your dependents rely on your benefits, they may continue to receive payments. Before release, work with prison staff or a reentry program to reconnect with SSA to avoid delays.
5. Self-Employed Workers Who Don’t Report Income
Self-employed individuals must report net earnings of $400 or more per year and pay self-employment tax to receive Social Security credit. Failing to report income means you won’t earn credits—and could lose future retirement eligibility.
Since your benefit is calculated based on your 35 highest-earning years, underreporting income can significantly reduce your monthly check. Filing accurate taxes each year and fixing past errors with amended returns is essential.
Keep thorough records, report all self-employment income on Schedule SE, and verify that your SSA earnings record reflects your work correctly.
Bottom Line
While most retirees will collect Social Security, not everyone qualifies. Gaps in your work record, unreported income, or unpaid debts can delay or reduce your benefits. To protect your future:
- Track your earnings and credits through your SSA account.
- Address any federal debts or legal obligations before retirement.
- Confirm payment rules before moving abroad.
- Report all self-employment income to secure your credits.
Understanding the system—and acting early—can make the difference between receiving full benefits and missing out. When in doubt, contact the Social Security Administration for clarification and explore additional income options to safeguard your retirement.