If you served in the military, you probably know that you can receive Social Security benefits for the time that you spent there. Chances are good, though, that you probably don’t really understand which parts of your service actually qualify for benefits, how much you should be getting, or just how it all works in general.
Why? This is due to the fact that for some reason, the government has chosen to make the Social Security benefit earning system for military personnel one of the most complicated systems ever created. For example, while active duty has been covered since 1957, participation in weekend drills didn’t count towards your benefits until 1988. And even though it wasn’t “covered” and no military personnel paid Social Security taxes before 1957, “some” military service before this time will still count as “special credit” and earn you more benefits.
Because of all the confusing rules, I thought it might be helpful for anyone out there who is or was in the military if I broke it down a little bit.
Breaking Down Social Security Benefits for Military Service
Now, this isn’t meant to be a comprehensive explanation of SS benefits from military service. There are so many different rules it’d be impossible to cover them all in a single blog post. My hope is to give current and former military personnel an overview of how their service counts.
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Medicare. Since 1957, military personnel have paid Social Security taxes just like everyone else. As of 2012, the tax rate is 5.65% of your earnings, up to $110,000. Medicare taxes, however, don’t have a cut-off point, and you’ll continue paying them 1.45% of your paycheck no matter how much you make.
Qualifying. Just like everyone else, military personnel have to work for a certain amount of time each year in order to earn Social Security credits for retirement. Those working in 2012 had to make at least $4,520 to earn four credits that year, and the amount you have to earn goes up every year. How many credits do you need to qualify for benefits? That depends on how old you are and the type of benefit. After 10 years of work, anyone qualifies for SS benefits.
Extra credit. Here’s where military benefits get complicated, and we’ll cover this more in depth in a later blog post. Those who had periods of active duty between 1957 and 2001 can get special extra credit for their work, but it varies depending on the time.
- 1940-1956. You can be credited with an extra $160 each month under certain circumstances.
- 1957-1967. Extra credits need to be added after you apply for SS.
- 1968-2001. Extra credits will already be included in your benefits.
- After 2001. The period of extra credits was discontinued.
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We cover more about this topic in our free disability eBook and periodically delve into it on this blog, but if you really want to discuss your specific situation, the best thing to do is contact an experienced Social Security Disability lawyer.
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