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The short answer
Yes: if you are a US citizen or resident and pay self-employment tax on income from Nigerian clients, those earnings count towards Social Security just like US income. In 2026 the SSA gives one credit for every $1,890 of covered earnings, up to four credits a year, and 40 credits are needed for retirement benefits. Unreported Nigerian income builds nothing, and the US has no Social Security agreement with Nigeria.
Many freelancers see self-employment tax as the painful part of working for Nigerian clients. It is also the only way that income reaches your Social Security record. For a Nigerian in the US who expects to retire partly at home, that record decides not only whether you qualify but whether payments can follow you to Nigeria. This guide explains how credits are earned from self-employment and what to watch. It is information, not financial or tax advice.
How self-employment tax feeds Social Security
The IRS self-employment tax page sets the tax at 15.3%: 12.4% for Social Security and 2.9% for Medicare, payable if your net earnings from self-employment are $400 or more. IRS Publication 54 says the rules are generally the same for a self-employed US citizen or resident at home or abroad, and that all self-employment income counts in net earnings, even income excluded from income tax by the foreign earned income exclusion.
What matters is your net earnings, after business expenses, figured on Schedule SE from your Schedule C profit. Your clients' location does not matter: a Lagos startup's payments count the same as a Chicago company's.
How credits are earned in 2026
- Earnings per credit
- $1,890 of covered earnings in 2026, per the SSA credits page
- Maximum per year
- 4 credits
- Earnings for 4 credits
- $7,560 (4 × $1,890)
- Needed for retirement benefits
- 40 credits
The SSA says credits are based on your total wages and self-employment income for the year. You do not have to earn the money evenly across the year: $7,560 of covered earnings at any point in 2026 gives four credits. The amount per credit changes each year, so check the SSA page for the current figure.
A worked example
Example only. Your 2026 freelance work for Nigerian and US clients produces net earnings from self-employment of $18,000 on Schedule SE.
| Item | Example figure |
|---|---|
| Net earnings from self-employment | $18,000 |
| Self-employment tax at 15.3% | $2,754 |
| of which Social Security (12.4%) | $2,232 |
| of which Medicare (2.9%) | $522 |
| Credits earned (needs $7,560 for 4) | 4 |
If instead your net earnings were $5,000, you would earn two credits ($5,000 is at least 2 × $1,890 = $3,780 but below 3 × $1,890 = $5,670). Ten years of four credits a year gets you to 40.
Why this matters for Nigerians
The SSA publication on payments outside the United States (April 2026) says there is no Social Security agreement between the US and Nigeria. For a non-citizen Nigerian, it says benefits can generally be paid abroad only with at least 40 US credits or 10 years of US residence; otherwise payments stop after six full calendar months outside the US. Credits you build from self-employment count towards that 40. Without an agreement, years you worked in Nigeria cannot be added to your US record.
Mistakes that cost credits
- Not reporting Nigerian income. Unreported income pays no self-employment tax and earns no credits.
- Over-claiming expenses. It lowers tax today but also lowers the earnings on your record.
- Missing the $400 threshold in a slow year: below it, no self-employment tax and no credits from that income.
- Treating naira income as separate. Convert it to dollars and include it; see converting naira invoices for Schedule C.
Check your record through a my Social Security account on the SSA site once returns are processed. For the tax itself, see self-employment tax on income from Nigerian clients, and for retirement savings on top, SEP IRA and Solo 401(k).
Credits and the retirement amount are different things
Forty credits make you eligible; they do not set the size of the benefit. The SSA works out the amount from your earnings record over your working life, so higher reported earnings over more years generally lead to a larger benefit. Credits stop at four a year however much you earn, but earnings above the credit threshold still go on your record up to the annual maximum taxed for Social Security. For a freelancer with irregular Nigerian income, that means each year's full net earnings matter, not only reaching $7,560.
If you also had US wages in the same year, wages and self-employment income are added together for credits, which the SSA confirms is based on total wages and self-employment income.
Keep copies of each year's Schedule SE with your return; they are the simplest way to check your SSA record matches what you paid.
Where Pryme fits
Clear income records make accurate Schedule SE figures easier. A Pryme Business Account keeps USD and NGN payments from each client in one place, and the Finance agent prepares a yearly income summary by client and currency for your preparer, which you approve. See the business multicurrency account.
Questions people ask
Does income from Nigerian clients count for US Social Security?
Yes, if you report it and pay self-employment tax on it as a US citizen or resident. Client location does not matter.
How much do I need to earn for a Social Security credit in 2026?
$1,890 of covered earnings per credit, up to four credits a year, according to the SSA.
How many credits do I need for retirement benefits?
40 credits, the SSA says, which usually means about 10 years of work.
Can I count years worked in Nigeria towards US Social Security?
No. The SSA says the US has no Social Security agreement with Nigeria, so Nigerian work is not added to your US record.
Sources
- SSA: Social Security credits · accessed Oct 2026
- IRS: Self-employment tax (Social Security and Medicare taxes) · accessed Oct 2026
- IRS: Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad (Rev. Dec 2025) · accessed Oct 2026
- SSA: Your payments while you are outside the United States (Pub 05-10137, Apr 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.