Social Security Credits & Benefits for H-1B Visa Holders

Every H-1B worker pays Social Security and Medicare taxes on their W-2 wages — 6.2% Social Security tax and 1.45% Medicare tax, matched by their employer. These contributions accrue Social Security credits. But collecting benefits as a non-citizen who may leave the U.S. is more complicated than most H-1B holders realize — especially since there is no U.S.–India Social Security totalization agreement.

How H-1B Workers Earn Social Security Credits

Social Security credits are earned based on your annual earnings. For 2025, you earn one credit for every $1,810 in covered earnings, up to a maximum of four credits per year. The earnings threshold is indexed to wage growth annually.

Any H-1B worker earning at least $7,560 in wages in 2026 earns the maximum four credits for that year. Most H-1B workers in professional roles earn well above this threshold, so they accumulate the maximum four credits every year of U.S. employment.

The critical threshold for benefits: 40 credits (10 years of covered employment). This is the minimum required for retirement, disability, and survivor benefits. For H-1B workers, the question is whether they will accumulate 40 credits before leaving the U.S.

What Benefits Are Available to H-1B Workers?

Social Security administers several benefit programs. Eligibility for each differs for non-citizens:

• Retirement benefits (OASI). Available to anyone who has earned 40 credits, regardless of citizenship, provided they are lawfully admitted to the U.S. and meet the residency or citizenship requirements at the time of collection. H-1B workers who accumulate 40 credits and later become green card holders or citizens can receive full retirement benefits.
• Disability Insurance (SSDI). For H-1B workers, SSDI eligibility requires recent work history (typically 20 credits in the 10 years before disability) and lawful presence in the U.S. Non-citizens can receive SSDI but must remain lawfully present to continue receiving payments.
• Survivor benefits. If an H-1B worker dies and has at least 6–10 credits (depending on age), their surviving spouse and children may receive benefits. This is one of the underappreciated protections for H-1B families — the H-4 spouse and U.S.-born children of an H-1B worker may be entitled to survivor benefits.
• Medicare (Part A). After earning 40 quarters of Medicare-covered employment, workers qualify for premium-free Medicare Part A at age 65. H-1B workers who become citizens or green card holders and remain in the U.S. into retirement can access Medicare.

If You Leave the U.S. Before 40 Credits

This is the most common painful scenario for H-1B workers who return to India after 5–8 years of U.S. employment. You have paid 6.2% of your wages into Social Security for years, but with fewer than 40 credits you generally cannot receive U.S. retirement benefits.

There are limited options:

• No refund of Social Security taxes paid. Unlike some countries, the U.S. does not offer a lump-sum refund of Social Security contributions for workers who leave without qualifying for benefits. The contributions are permanently forfeited if you do not meet the 40-credit threshold. This is sometimes called the “Social Security tax trap” for H-1B workers.
• No totalization with India. Countries with totalization agreements allow workers to combine credits from both countries to reach eligibility thresholds. India has no such agreement with the U.S., so Indian Provident Fund or Pension Fund contributions do not count toward U.S. Social Security credits, and vice versa.
• Credits do not expire. Social Security credits earned in the U.S. do not expire. If you return to India and later come back to the U.S. (on a different visa, as a green card holder, or as a citizen), your prior credits are preserved. You can pick up where you left off.
• Partial credits and future planning. If you have 28 credits from 7 years of H-1B work and plan to return to the U.S. eventually, 3 more years of covered employment will complete the 40-credit requirement.

Social Security and H-4 EAD Spouses

Once an H-4 spouse receives an Employment Authorization Document (EAD) and begins working, Social Security and Medicare taxes are withheld from their wages just like any other worker. Each year of H-4 EAD employment also accumulates up to four Social Security credits.

Spousal benefits under Social Security allow a non-working or lower-earning spouse to receive up to 50% of the worker's benefit at full retirement age, without needing their own work credits. However, this requires the claiming spouse to be at least 62 years old and the worker spouse to already be collecting benefits (or have filed and suspended).

For H-4 spouses who become green card holders or citizens and remain in the U.S. long-term, accumulating their own credits through H-4 EAD employment strengthens their independent benefit entitlement — especially important if the marriage later ends.

Social Security Taxes and Your W-2

Social Security and Medicare taxes withheld from H-1B wages appear in specific boxes on your W-2:

• Box 3: Social Security wages — wages subject to Social Security tax. For 2026, the Social Security wage base is $184,500. Wages above this threshold are not subject to the 6.2% Social Security tax.
• Box 4: Social Security tax withheld — should equal 6.2% of Box 3, up to $11,439 for 2026.
• Box 5: Medicare wages and tips — there is no wage base cap on Medicare. All wages are subject to 1.45% Medicare tax.
• Box 6: Medicare tax withheld — should equal 1.45% of Box 5 for wages under the Additional Medicare Tax threshold ($200,000 for withholding purposes, $250,000 MFJ for actual tax).

H-1B workers with multiple employers in the same year may have excess Social Security withholding (more than $11,439 total). This excess is fully refundable as a credit on Schedule 3, Line 11 — you get it back when you file.

Related guides: Reading Your W-2 as an H-1B Holder | Additional Medicare Tax (Form 8959)