Earnings for those in active duty military service or training have been covered by Social Security since 1957. Inactive duty service in the reserves has been covered since 1988.
For those who were in the military before 1957, you did not pay Social Security taxes. Some confuse the fact that you can not receive military retirement and Social Security, this is not true.
You’re military benefits usually will not affect the amount of Social Security benefits you receive. You’re earnings base your Social Security benefit.
Despite some common belief, civilian employees and military service men all pay Social Security taxes the same. Last year, the tax rate was 7.65 percent. This stays at this same rate up until a certain amount. After this amount, you will continue to pay the Medicare portion of the tax on the remainder of you’re earnings.
Everyone is not eligible for benefits. You must have worked and paid Social Security taxes for an acceptable length of time. Last year, if you earned $4, 480, you received four credits. However t he amount needed to get credit for your work increases each year.
As I have already stated, your Social Security benefit depends on your earnings, which is averaged over your working lifetime. The higher the earnings, the higher your benefit. If you had served in the military after 1956, you paid Social Security taxes on extra earnings.
Extra earnings are for periods of active duty or active duty training. Also, if you served in the military from 1940-1956, you did not pay Social Security taxes.
Social Security records can be credited each month for those years of service if you meet special circumstances. An example of these circumstances is if you were honorably discharged, or released due to disability. You are also eligible if you are still in active duty. Lastly, you can’t receive however credit for these earnings if you are already receiving a federal benefit for these same years of service.
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