---
kind: "range"
citation: "20 C.F.R. §§ 404.140–404.146"
title: "20"
from: "404.140"
to: "404.146"
count: 7
url: "https://uscodex.org/cfr/20/404.140..404.146"
---

# §404.140. What is a quarter of coverage.

- (a) **General.** A quarter of coverage (QC) is the basic unit of social security coverage used in determining a worker's insured status. We credit you with QCs based on your earnings covered under social security.
- (b) **How we credit QCs based on earnings before 1978 (General).** Before 1978, wages were generally reported on a quarterly basis and self-employment income was reported on an annual basis. For the most part, we credit QCs for calendar years before 1978 based on your quarterly earnings. For these years, as explained in [§ 404.141](/cfr/20/404.141.md), we generally credit you with a QC for each calendar quarter in which you were paid at least $50 in wages or were credited with at least $100 of self-employment income. [Section 404.142](/cfr/20/404.142.md) tells how self-employment income derived in a taxable year beginning before 1978 is credited to specific calendar quarters for purposes of [§ 404.141](/cfr/20/404.141.md).
- (c) **How we credit QCs based on earnings after 1977 (General).** After 1977, both wages and self-employment income are generally reported on an annual basis. For calendar years after 1977, as explained in [§ 404.143](/cfr/20/404.143.md), we generally credit you with a QC for each part of your total covered earnings in a calendar year that equals the amount required for a QC in that year. [Section 404.143](/cfr/20/404.143.md) also tells how the amount required for a QC will be increased in the future as average wages increase. [Section 404.144](/cfr/20/404.144.md) tells how self-employment income derived in a taxable year beginning after 1977 is credited to specific calendar years for purposes of [§ 404.143](/cfr/20/404.143.md).
- (d) **When a QC is acquired and when a calendar quarter is not a QC (general).** [Section 404.145](/cfr/20/404.145.md) tells when a QC is acquired and [§ 404.146](/cfr/20/404.146.md) tells when a calendar quarter cannot be a QC. These rules apply when we credit QCs under [§ 404.141](/cfr/20/404.141.md) or [§ 404.143](/cfr/20/404.143.md).

# §404.141. How we credit quarters of coverage for calendar years before 1978.

- (a) **General.** The rules in this section tell how we credit calendar quarters as quarters of coverage (QCs) for calendar years before 1978. We credit you with a QC for a calendar quarter based on the amount of wages you were paid and self-employment income you derived during certain periods. The rules in paragraphs [(b)](#b), [(c)](#c), and [(d)](#d) of this section are subject to the limitations in [§ 404.146](/cfr/20/404.146.md), which tells when a calendar quarter cannot be a QC.
- (b) **How we credit QCs based on wages paid in, or self-employment income credited to, a calendar quarter.** We credit you with a QC for a calendar quarter in which—
  - (1) You were paid wages of $50 or more (see [paragraph (c)](#c) of this section for an exception relating to wages paid for agricultural labor); or
  - (2) You were credited (under [§ 404.142](/cfr/20/404.142.md)) with self-employment income of $100 or more.
- (c) **How we credit QCs based on wages paid for agricultural labor in a calendar year after 1954.**
  - (1) We credit QCs based on wages for agricultural labor depending on the amount of wages paid during a calendar year for that work. If you were paid wages for agricultural labor in a calendar year after 1954 and before 1978, we credit you with QCs for calendar quarters in that year which are not otherwise QCs according to the following table.
  - (2) When we assign QCs to calendar quarters in a year as shown in the table in [paragraph (c)(1)](#c-1) of this section, you might not meet (or might not meet as early in the year as otherwise possible) the requirements to be fully or currently insured, to be entitled to a computation or recomputation of your primary insurance amount, or to establish a period of disability. If this happens, we assign the QCs to different quarters in that year than those shown in the table if this assignment permits you to meet these requirements (or meet them earlier in the year). We can only reassign QCs for purposes of meeting these requirements.
- (d) **How we credit QCs based on wages paid or self-employment income derived in a year.**
  - (1) If you were paid wages in a calendar year after 1950 and before 1978 at least equal to the annual wage limitation in effect for that year as described in §§ [404.1047](/cfr/20/404.1047.md) and [404.1096](/cfr/20/404.1096.md), we credit you with a QC for each quarter in that calendar year. If you were paid at least $3,000 wages in a calendar year before 1951, we credit you with a QC for each quarter in that calendar year.
  - (2) If you derived self-employment income (or derived self-employment income and also were paid wages) during a taxable year beginning after 1950 and before 1978 at least equal to the self-employment income and wage limitation in effect for that year as described in [§ 404.1068(b)](/cfr/20/404.1068.md?p=b), we credit you with a QC for each calendar quarter wholly or partly in that taxable year.

# §404.142. How we credit self-employment income to calendar quarters for taxable years beginning before 1978.


In crediting quarters of coverage under [§ 404.141(b)(2)](/cfr/20/404.141.md?p=b-2), we credit any self-employment income you derived during a taxable year that began before 1978 to calendar quarters as follows:

- (a) If your taxable year was a calendar year, we credit your self-employment income equally to each quarter of that calendar year.
- (b) If your taxable year was not a calendar year (that is, it began on a date other than January 1, or was less than a calendar year), we credit your self-employment income equally—
  - (1) To the calendar quarter in which your taxable year ended; and
  - (2) **To each of the next three or fewer preceding quarters that were wholly or partly in your taxable year.**

# §404.143. How we credit quarters of coverage for calendar years after 1977.

- (a) **Crediting quarters of coverage (QCs).** For calendar years after 1977, we credit you with a QC for each part of the total wages paid and self-employment income credited (under [§ 404.144](/cfr/20/404.144.md)) to you in a calendar year that equals the amount required for a QC in that year. For example, if the total of your wages and self-employment income for a calendar year is more than twice, but less than 3 times, the amount required for a QC in that year, we credit you with only 2 QCs for the year. The rules for crediting QCs in this section are subject to the limitations in [§ 404.146](/cfr/20/404.146.md), which tells when a calendar quarter cannot be a QC. In addition, we cannot credit you with more than four QCs for any calendar year. The amount of wages and self-employment income that you must have for each QC is—
  - (1) $250 for calendar year 1978; and
  - (2) For each calendar year after 1978, an amount determined by the Commissioner for that year (on the basis of a formula in section 213(d)(2) of the Act which reflects national increases in average wages). The amount determined by the Commissioner is published in the Federal Register on or before November 1 of the preceding year and included in the appendix to this subpart.
- (b) **Assigning QCs.** We assign a QC credited under [paragraph (a)](#a) of this section to a specific calendar quarter in the calendar year only if the assignment is necessary to—
  - (1) Give you fully or currently insured status;
  - (2) Entitle you to a computation or recomputation of your primary insurance amount; or
  - (3) **Permit you to establish a period of disability.**

# §404.144. How we credit self-employment income to calendar years for taxable years beginning after 1977.


In crediting quarters of coverage under [§ 404.143(a)](/cfr/20/404.143.md?p=a), we credit self-employment income you derived during a taxable year that begins after 1977 to calendar years as follows:

- (a) If your taxable year is a calendar year or begins and ends within the same calendar year, we credit your self-employment income to that calendar year.
- (b) If your taxable year begins in one calendar year and ends in the following calendar year, we allocate proportionately your self-employment income to the two calendar years on the basis of the number of months in each calendar year which are included completely within your taxable year. We consider the calendar month in which your taxable year ends as included completely within your taxable year.

# §404.145. When you acquire a quarter of coverage.


If we credit you with a quarter of coverage (QC) for a calendar quarter under paragraph [(b)](/cfr/20/404.141.md?p=b), [(c)](/cfr/20/404.141.md?p=c), or [(d)](/cfr/20/404.141.md?p=d) of § 404.141 for calendar years before 1978 or assign it to a specific calendar quarter under [paragraph (b)](/cfr/20/404.143.md?p=b) of § 404.143 for calendar years after 1977, you acquire the QC as of the first day of the calendar quarter.


# §404.146. When a calendar quarter cannot be a quarter of coverage.


This section applies when we credit you with quarters of coverage (QCs) under [§ 404.141](/cfr/20/404.141.md) for calendar years before 1978 and under [§ 404.143](/cfr/20/404.143.md) for calendar years after 1977. We cannot credit you with a QC for—

- (a) A calendar quarter that has not begun;
- (b) A calendar quarter that begins after the quarter of your death;
- (c) A calendar quarter that has already been counted as a QC; or
- (d) **A calendar quarter that is included in a period of disability established for you, unless—**
  - (1) The quarter is the first or the last quarter of this period; or
  - (2) The period of disability is not taken into consideration (see [§ 404.320(a)](/cfr/20/404.320.md?p=a)).