Certified Senior Advisor (CSA) Practice Test

To be eligible for Social Security benefits, individuals must earn a certain number of "credits" based on their work history. In 2023, earning one credit requires a specific amount of income, and an individual can earn up to a maximum number of credits per year.

Wages from a full-time job, wages from part-time work, and self-employment income all contribute towards earning these credits because they represent income earned through employment or self-employment. These types of earnings are considered covered earnings and are taxed under the Federal Insurance Contributions Act (FICA), which funds Social Security.

Dividends from investments, on the other hand, are classified as unearned income. They do not come from work or labor, and therefore, do not contribute towards gaining Social Security credits. This distinction is crucial in understanding how Social Security works, as only income derived from working contributes to the required earnings for credits that lead to benefits. Therefore, dividends do not count towards a quarter of Social Security coverage, making this option the correct answer.