Natalia
If you wore the uniform, your military service can do more than earn pride—it can boost your Social Security record and potentially increase your monthly benefit.
The Social Security Administration (SSA) counts most active-duty pay toward retirement, disability, and survivors benefits, and certain years of service can receive special extra earnings credits that make your record stronger.
In 2025, the SSA’s rules, thresholds, and long-standing veteran provisions continue to help former service members turn time in uniform into higher lifetime average earnings, which is the foundation of your benefit calculation.
Quick refresher: how Social Security turns work into benefits
Your monthly Social Security benefit is built on your lifetime earnings history, indexed for inflation, then averaged (AIME) and run through a progressive formula (PIA).
In simple terms: more covered earnings → potentially higher benefits.
You also need enough credits to qualify. In 2025, you earn 1 credit for each $1,810 in wages (up to 4 credits per year—no one needs more than 40 credits, i.e., about 10 years of covered work).
Key point: Military service generally counts the same as civilian work for earning credits and building your average earnings—plus, for certain past periods, you may get additional “special” credits on top.
What counts as “covered” military service?
- Active duty or active duty for training has been covered under Social Security since 1957 (payroll taxes were withheld, just like civilian jobs).
- Inactive duty training (e.g., Reserve/National Guard weekend drills) has been covered since Jan. 1, 1988. That means those drill checks also add to your Social Security earnings record.
Additionally, receiving a military pension does not reduce your Social Security retirement benefit; you can get both.
Special extra earnings credits: the veteran’s advantage
Beyond regular covered wages, SSA may add extra earnings to the records of people who served during specific periods.
These don’t show up as cash in your pocket; instead, they’re added to the earnings the SSA averages, which can raise your ultimate benefit.
The three major windows:
- Service from Sept. 16, 1940 – Dec. 31, 1956 (pre-Social Security withholding)
- You didn’t pay Social Security tax on military pay then, but SSA can credit your record with $160 of deemed wages for each month of active service (subject to qualifying conditions such as discharge status or line-of-duty death).
- Service from 1957 – 1977
- Military pay was covered, and SSA may add $300 in extra earnings for each calendar quarter in which you received active-duty basic pay.
- Service from 1978 – 2001
- For every $300 of active-duty basic pay, SSA credits an additional $100 of earnings, capped at $1,200 per year. (If you enlisted after Sept. 7, 1980 and didn’t complete 24 months of active duty or the full agreed tour, the extra credit may not apply.)
Important: There are no special extra earnings credits for service after 2001. From 2002 forward, only your actual covered military wages count.
2025 tax and credit facts veterans should know
- While serving, you pay 6.2% Social Security tax on wages up to the 2025 wage base ($176,100) and 1.45% Medicare tax on all wages (with an extra 0.9% Medicare surtax for high earners over the law’s thresholds).
- In 2025 you get 1 credit per $1,810 of earnings, up to 4 credits per year. Credits determine eligibility; benefit size depends on total lifetime covered earnings (including any special extra credits you qualify for).
How the credits actually help your benefit
Adding deemed or special extra earnings can:
- Increase your AIME, which may raise your monthly benefit.
- Help you qualify (reach 40 credits) if you’re otherwise short on credits, particularly for vets with service-heavy careers and less civilian time.
- Strengthen survivors and disability protection for your family, because those benefits also use the same underlying earnings record.
SSA notes that these extras are credited to your earnings history, not directly tacked onto your monthly check; the increase happens through the normal formula after the averages are recalculated.
Documentation and how to make sure you get what you earned
When you apply for Social Security (retirement, disability, or survivors benefits), SSA may ask for proof of service—most commonly your DD-214 or Reserve/National Guard records—so the agency can verify your eligibility for special extra earnings and ensure your military pay has been properly posted.
These extra credits for 1957–1967 are added when you apply; from 1968–2001, they were added automatically.
Practical steps (2025):
- Create a “my Social Security” account and review your Earnings Record for all years of service. If military years are missing or low, gather your orders, LES, and DD-214.
- Apply for benefits and submit your proof of service. Ask the agent to review you for special extra earnings.
- If an earnings year is incorrect, request a correction (SSA can tell you what documentation is needed).
- If you suffered a service-connected disability while on active duty on or after Oct. 1, 2001, SSA provides expedited claims processing through Wounded Warriors.
Reserve & Guard service: what counts
If you served exclusively in the Reserves or National Guard, your active-duty for training time has been covered since 1957, and inactive duty training (drills) has been covered since 1988.
Your drill pay appears on your Social Security record and helps you earn credits and increase lifetime earnings for benefit purposes.
What about your civilian retirement plan while deployed?
If you left a civilian job for military service, the Uniformed Services Employment and Reemployment Rights Act (USERRA) protects your reemployment rights and certain pension/retirement plan accruals with your civilian employer.
While USERRA is separate from Social Security, it ensures your civilian plan can treat your period of service as if you had not left, keeping your private-sector retirement on track.
Military service and the Windfall Elimination Provision (WEP)
Because post-1956 military pay is covered by Social Security, it is not “non-covered” employment. That means your military service itself doesn’t trigger WEP.
(WEP can still apply if you also have a pension from non-covered civilian work, but your time in uniform won’t be the reason.)
Tip: if you have a mix of covered and non-covered civilian jobs, ask SSA to evaluate WEP at application time.
How past military service may add to your Social Security record
| Service Period | What SSA Adds | When/How It’s Applied | Coverage Notes |
|---|---|---|---|
| 9/16/1940 – 12/31/1956 | $160/month of deemed wages (conditions apply) | Considered when you apply (prove service; discharge/death rules apply) | No payroll tax then; credits help build your record. |
| 1957 – 1967 | $300 per quarter of special extra earnings (with active-duty basic pay) | Added when you apply for benefits | Active duty/ADT covered; extras increase averaged earnings. |
| 1968 – 1977 | $300 per quarter of extra earnings | Automatically added | Same rule as above; automated posting begins in 1968. |
| 1978 – 2001 | $100 for each $300 of basic pay, up to $1,200/year (24-month minimum may apply for certain post-9/7/1980 enlistments) | Automatically added | Ends after 2001; from 2002+, no special extras. |
| Inactive duty training (drills) | Covered for Social Security starting 1/1/1988 | Posted through normal payroll reporting | Helps earn credits and lift lifetime average earnings. |
Worked example (illustrative)
Suppose a veteran earned $24,000 in active-duty basic pay in 1979. Under the 1978–2001 rule, SSA adds $100 in extra earnings for each $300 of basic pay, capped at $1,200. $24,000 ÷ $300 = 80 → $1,200 maximum extra earnings would be added for that year. That $1,200 isn’t a check; it’s added to your earnings record, potentially lifting your AIME and, ultimately, your monthly benefit when you file.
Common mistakes that leave money on the table
- Not checking your my Social Security earnings record for missing military years.
- Assuming military retirement reduces Social Security—it generally doesn’t.
- Forgetting that drill pay counts (from 1988 onward).
- Overlooking the 24-month rule caveat for certain post-1980 enlistments when counting 1978–2001 extras.
- Believing special extras exist after 2001—they don’t.
2025 action checklist for veterans and families
- Create/Log in to my Social Security and review your Earnings Record (look for service years).
- Gather documentation: DD-214, orders, LES, Reserve/Guard records.
- When filing, ask SSA to review you for special extra earnings (if your service dates qualify).
- If disabled and service-connected on or after Oct. 1, 2001, note expedited processing under Wounded Warriors.
- If you left a civilian job for service, talk to HR about USERRA protections for your civilian retirement plan.
Your military service can be one of the most valuable chapters in your Social Security story.
Whether you served in the 1940–1956 era and qualify for deemed wage credits, or you earned special extra earnings during 1957–2001, those additions can raise the earnings average that ultimately determines your benefit.
Since inactive duty training is covered from 1988 onward and military pay has been covered since 1957, nearly all service adds weight to your record.
In 2025, the smartest move is to verify your earnings, gather proof of service, and make sure SSA has applied every credit you earned.
The difference can translate into higher lifetime benefits for you—and stronger protection for your family.
FAQs
It depends on when you served.
For 1957–1967, SSA adds the extras when you apply; for 1968–2001, they were added automatically; and after 2001, no special extras apply (only your actual covered wages count).