Deemed Wage Credits After 1956

953. Deemed Wage Credits After 1956

953.1 What are "deemed wage credits"?

A member of a uniformed service may have wage credits in addition to basic pay received for active duty or active duty for training. These credits are subject to the maximum earnings limitation on income taxable for Social Security purposes. These "deemed wage credits" are granted in recognition of the fact that covered basic pay is increased by various allowances that are part of the actual reimbursement for services.

953.2 How are deemed wage credits granted?

You are granted deemed wage credits as follows:

  1. For years 1957 through 1977, you are granted $300 for each calendar quarter that you receive any basic pay.

  2. For years 1978 through 2001, you are granted credits in increments of $100 up to a maximum of $1,200 per calendar year. The $100 increments are granted for each full $300 of basic pay. No credit is granted if your annual wages are less than $300 and no further credit may be granted when the annual wages exceed $3,600.

  3. Effective 01/01/02, deemed wage credits are eliminated for all years after calendar year 2001. Deemed wage credits will continue to be given for military wages for periods prior to calendar year 2002.

953.3 When are deemed wage credits NOT granted?

After September 7, 1980, wage credits may not be granted to service members discharged or released from active duty before completing the minimum active duty requirements. Therefore, wage credits will not be granted:

  1. After September 7, 1980, if you were initially enlisted in a regular component of the Armed Forces and:

    1. You did not complete at least 24 months of your enlistment; or

    2. The full period of active duty you were called upon to serve was less than 24 months, unless you were discharged due to:

      1. Hardship as specified in section 1173 of Title 10 of the U.S. Code;

      2. The application of section 1171 of Title 10 of the U.S. Code (commonly referred to as "for the convenience of the government");

      3. Disability under certain circumstances; or

      4. Death during the period of enlistment;

  2. Your entry on active duty occurred after October 13, 1982, in a regular component of the Armed Forces and:

    1. You did not previously complete a continuous period of active duty of at least 24 months; or

    2. You were discharged or released from active duty before completing the lesser of 24 months or the full period of the tour of active duty being served unless the individual was discharged or released from active duty due to:

      1. hardship as specified in section 1173 of Title 10 of the U.S. Code;

      2. the application of section 1171 of Title 10 of the U.S. Code (commonly referred to as "for the convenience of the government");

      3. disability under certain circumstances; or

      4. death during the period of enlistment.

Last Revised: Aug. 9, 2006

Comments

Deemed Wage Credit

December 6, 2008 by Guest

Sirs,
I still don't understand the concept of the deemed wage credit. As in pay wise what does it mean.

deemed wage credit

March 9, 2010 by jim selvidge

according to the deemed wage credit I am eligible to recieve it but, I make more than the annual 3600 so therefore it may disqualify me?

Deemed wage credit (Military service wage credits)

March 9, 2010 by David Luhman

Yes, assuming you're talking about military service from 1978 through 2001, my reading is that one would not receive any additional credits when the annual wages exceed $3,600.

Please check directly with the SSA for verification.

Deemed military wage credit

April 7, 2010 by Guest

As noted above, the operative words are "additional credits." If you earned, during the period 1978-2001, over $3,600, you would still get deemed military credits for the first $3,600, but no additional deemed military wage credits for any earnings above $3,600.
by SSA employee

Proof required for Deemed Wages credit

September 21, 2010 by billbraun

What paperwork is required by the SSA to prove Deemed Wages for Military active duty and reserve duty? Does this paperwork also disclose the time periods covered by military service?