EB-5 and Social Security: Benefits and Contributions for Investor Immigrants

EB-5 permanent residents can earn Social Security benefits by working in the United States. By earning work credits through employment, you build toward retirement, disability, and survivor benefits. This article explains how Social Security works for EB-5 immigrants.

What Is Social Security?#

Social Security is a federal insurance program providing:

• Retirement income (age 62+)
• Disability income (if disabled before retirement age)
• Survivor benefits (to family if you die)
• Medicare health insurance at age 65

Earned through paying Social Security taxes during employment.

Eligibility for Permanent Residents#

EB-5 permanent residents are eligible for:

• All Social Security benefits (same as citizens)
• Medicare coverage
• Full participation in Social Security system
• Same rules and calculation methods apply

No restrictions based on immigration status.

What Are Work Credits?#

Work credits are earned through:

• Employment in the United States
• Paying Social Security payroll taxes
• Self-employment with self-employment tax
• One credit earned per quarter (roughly)
• 40 credits required for retirement benefits

Work credits measure your employment/tax history.

Earning Work Credits#

You earn work credits by:

• Working and paying Social Security tax (withheld from paycheck)
• Self-employment and paying self-employment tax
• One credit earned per quarter with sufficient earnings
• Four credits possible per year (one per quarter)

Every paycheck contributes to work credits.

40 Credits Requirement#

To qualify for retirement benefits:

• Need 40 total work credits
• Equivalent to approximately 10 years of work
• Credits earned at any time during lifetime (they don't expire)
• Can be spread over many years

10 years of employment typically earns 40 credits.

When You Can Receive Retirement Benefits#

Retirement benefits available at:

• Age 62 (reduced benefit)
• Age 66-67 (full retirement age, full benefit)
• Age 70+ (delayed retirement, higher benefit)

The older you wait, the higher your monthly benefit.

Full Retirement Age#

Full retirement age for benefits depends on birth year:

• Ages 65-66 (those born before 1943)
• Ages 66-67 (those born 1943-1959)
• Age 67 (those born 1960 or later)

Check Social Security website for your full retirement age.

Benefit Calculation#

Your retirement benefit is calculated as:

• Based on your 35 highest-earning years of work
• Indexed for inflation and wage growth
• Converted to monthly benefit amount
• Reduced if you take it before full retirement age
• Increased if you delay claiming past full retirement age

The more you earn and longer you work, the higher your benefit.

Estimated Benefit Amount#

Typical 2026 retirement benefits:

• Average benefit (age 66): Approximately $2,100/month
• Average benefit (age 70): Approximately $3,100/month
• Can range from $1,000+ to $4,500+ per month depending on earnings history

Social Security website provides free estimate.

Working in the United States#

To build Social Security credits:

• Need valid work authorization (you have with green card)
• Employer withholds Social Security/Medicare taxes
• Taxes fund your future Social Security benefits
• Self-employment also builds credits

Every job contributes to your Social Security record.

Self-Employment and Social Security#

If self-employed:

• Pay self-employment tax (15.3% of net income)
• Half is deductible as business expense
• Contributions fund your Social Security
• Same benefit calculations apply

Self-employment tax builds Social Security credits.

Employer Contributions#

From employer's perspective:

• Employer matches your Social Security tax (6.2%)
• Employer pays unemployment insurance (FUTA)
• You receive these benefits through payroll withholding
• Combined match helps fund your benefits

Employer contributions are part of total employment benefit.

Medicare Eligibility#

At age 65:

• Medicare Part A (hospital insurance) available
• Medicare Part B (medical insurance) available
• Automatic enrollment if receiving Social Security
• No additional qualification needed for permanent residents

Medicare is available to all 65+ permanent residents.

Medicare Parts#

Medicare includes:

• Part A: Hospital insurance (inpatient hospital care, skilled nursing, etc.)
• Part B: Medical insurance (doctor visits, outpatient care, etc.)
• Part D: Prescription drug coverage (optional)
• Part C: Medicare Advantage (alternative coverage option)

Choose appropriate coverage at age 65.

Medicare Costs#

Medicare costs (2026 approximate):

• Part A premium: Free (if 40 work credits)
• Part B premium: $164.90/month (standard)
• Part D prescription: $15-40/month typically
• Deductibles and copays apply

Cost depends on coverage selected and income.

Spousal Benefits#

If your spouse is eligible:

• Can receive up to 50% of your primary benefit
• Spouse must be age 62+ (or caring for child under 16)
• Benefit paid to spouse independent of your benefit
• Divorced spouses may also qualify

Spousal benefits increase total family benefits.

Dependent Children Benefits#

Your children may receive benefits if:

• You are receiving Social Security retirement or disability
• Child is under 19 (or 19 if still in high school)
• Full-time college students: benefits end at age 19
• Disabled children: benefits continue indefinitely if disabled before 22

Family benefits increase household income significantly.

Family Maximum#

Total family benefits are limited:

• Maximum typically 150-180% of your primary benefit
• If multiple family members receive benefits, reduced proportionally
• Each family member receives their proportional share
• Never reduces your individual benefit

Family maximum ensures benefits don't exceed total program design.

Social Security Disability Insurance (SSDI)#

If you become disabled before retirement:

• Can receive disability benefits if you have 40 work credits
• Benefits available regardless of age
• Based on same calculation as retirement benefits
• Family members may also receive benefits
• Continues until you reach full retirement age (then converts to retirement)

Disability provides income if you cannot work.

Qualifying for Disability#

To qualify:

• Must have serious medical condition expected to last 12+ months
• Condition must prevent substantial work
• Recent work history required (varies by age)
• Medical evidence required
• Application process and approval timeline

Disability determination requires medical documentation.

Family Benefits Upon Death#

If you die:

• Surviving spouse can receive benefits (at age 60 or caring for child)
• Children can receive benefits until age 18-19
• Parents may receive benefits if dependent
• One-time death benefit of $255 to surviving family

Survivor benefits protect your family.

Amount of Survivor Benefits#

Total survivor benefits typically:

• Equal 100-180% of worker's primary benefit
• Divided among all eligible survivors
• Each survivor receives reduced proportion
• Family maximum applies

Survivor benefits replace part of lost income.

Getting Your Social Security Number#

When you receive green card:

• Apply for Social Security number
• SSA office processes application
• Takes 1-2 weeks typically
• Required for employment

Get SSN early upon receiving green card.

Applying for Social Security Number#

To apply:

• Visit local Social Security Administration office
• Bring green card and passport
• Complete application form
• Social Security number issued within 1-2 weeks
• Number can be used immediately

SSN is essential for employment and benefits.

Tracking Your Social Security Record#

Check your record annually:

• Visit www.ssa.gov
• Create online account
• View your Social Security Statement
• Verify earnings record
• Check work credits accumulated

Annual review ensures accuracy.

Early Claiming (Age 62)#

If you claim at 62:

• Receive approximately 70% of full benefit
• 8 years of earlier payments
• Example: $2,100/month at 67 becomes ~$1,470/month at 62
• Total lifetime benefits about the same (break-even around age 80)

Early claiming works if you need income immediately or doubt longevity.

Full Retirement Age (66-67)#

If you claim at full retirement age:

• Receive 100% of calculated benefit
• Full benefit for life
• Standard recommendation if you can wait
• Break-even point compared to early claiming

Full age claiming is middle ground.

Delayed Claiming (Age 70)#

If you delay until 70:

• Receive approximately 124% of full benefit
• Higher monthly income for life
• Example: $2,100/month at 67 becomes ~$2,600/month at 70
• Best if you expect long life

Delayed claiming maximizes lifetime benefits if longevity expected.

Calculating Your Benefits#

Use Social Security calculators:

• www.ssa.gov/benefits/retirement/estimator
• Free benefit estimators
• Personalized based on your earnings record
• Consider different claiming scenarios

Estimate your benefits based on different scenarios.

Working While Receiving Benefits#

If you receive benefits before full retirement age:

• Earnings limit applies ($23,400 in 2024; adjusts annually)
• $1 benefit reduction for every $2 earned above limit
• After full retirement age, no limit on earnings
• Continue building work credits if still employed

You can work and receive reduced benefits.

Working Abroad and Social Security#

If you work abroad:

• Social Security credits may still apply (if employer pays taxes)
• Some countries have Social Security totalization agreements with US
• Can count work in other countries toward US benefits in some cases
• Consult Social Security about your situation

Social Security may count international work in some situations.

Receiving Benefits While Abroad#

If you receive benefits while abroad:

• Can generally receive benefits anywhere
• Some countries have restrictions (North Korea, Cuba, etc.)
• Annual certification may be required
• Payment methods vary by country

Permanent residents can receive benefits while living abroad.

When Social Security Is Taxable#

Some benefits may be taxable:

• If you have high income (beyond Social Security)
• Tax affects up to 85% of benefits
• Based on "combined income" (income + half of Social Security benefits)
• Complex calculation

Higher-income retirees may face Social Security taxation.

Avoiding Taxation of Benefits#

To minimize taxation:

• Strategically time benefit claiming
• Coordinate with other income sources
• Consider delaying claim if high income early in retirement
• Consult tax professional

Tax planning can reduce benefit taxation.

EB-5 permanent residents have full access to Social Security benefits. By working in the United States and paying Social Security taxes, you build toward retirement income, disability protection, Medicare coverage, and family benefits.

The longer you work and the higher your earnings, the greater your benefits. Start building your Social Security record immediately upon receiving your green card. By retirement, a career of US employment provides meaningful Social Security income as part of your retirement security.