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Are VA Disability Benefits Taxable?

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Many veterans and their families have this question when preparing their taxes or are just curious about the result of receiving VA disability benefits on their income. But before we answer the question, “are VA disability benefits taxable?” let’s understand what the VA disability benefits are first.

The Many VA Benefits:

  • Assistance for education and training
  • Compensation for service-connected disabilities
  • Pensions for service-connected disabilities
  • Wheelchair-accessible housing
  • Automobile assistance, grants for disability vehicles
  • Insurance proceeds
  • Dividend interest on VA deposits
  • Dependent care
  • Death gratuities 
  • Work therapy program payments

Are VA Disability Benefits Taxable?

No, VA disability benefits are not taxable, according to IRS Publication 907.

Therefore, you should not include in your income any veterans’ benefits paid under any law, regulation, or administrative practice administered by the VA.

However, different rules may apply to any military retiree that receives disability benefits not coming from the VA. 

In addition, there are certain circumstances where veterans have to report some or all their benefits to the IRS. You have the option to contact a tax professional if this scenario were to happen. They will help determine any taxes that may need to be paid.

Can I Get Other Tax-Free Benefits?

Veterans and their families may be eligible for the following tax-free benefits:

  • Dependency and Indemnity Compensation—If you are an immediate family member of a veteran who died from a service-related injury or illness.
  • Special Monthly Compensation— An additional payment that cover certain disabilities. Loss of a limb, loss of sight, or need for regular aid and attendance

Increase Your VA Disability Rating

If you or anyone you know served in the military, you may need help obtaining a fair disability rating and compensation—contact Veteran Ratings. Veteran Ratings has a 95% chance of success in acquiring the rating and benefits you deserve.

Have a question? On the fence? Then contact us for more information. We are here for you — we proudly serve those who served. Veterans are our only priority because they made this the land of the free through their bravery and sacrifice.

Get The Benefits You Deserve

contact one of our consultants today for a free evaluation of your VA claim

learn more
James Cooper
James Cooper
James Cooper comes from a long line of Veterans and decided to enlist for the Marine Corps at the ripe age of 18-years-old following in his father's footsteps. Shortly after being medically discharged from the service, James decided to pursue a career in journalism. Having battled with the VA for years himself, he began to study the system and commit his career to help fellow disabled veterans.

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Are VA Disability Benefits Taxable?

Many veterans and their families have this question when preparing their taxes or are just curious about the result of receiving VA disability benefits on their income. But before we answer the question, “are VA disability benefits taxable?” let’s understand what the VA disability benefits are first.

The Many VA Benefits:

  • Assistance for education and training
  • Compensation for service-connected disabilities
  • Pensions for service-connected disabilities
  • Wheelchair-accessible housing
  • Automobile assistance, grants for disability vehicles
  • Insurance proceeds
  • Dividend interest on VA deposits
  • Dependent care
  • Death gratuities 
  • Work therapy program payments

Are VA Disability Benefits Taxable?

No, VA disability benefits are not taxable, according to IRS Publication 907.

Therefore, you should not include in your income any veterans’ benefits paid under any law, regulation, or administrative practice administered by the VA.

However, different rules may apply to any military retiree that receives disability benefits not coming from the VA. 

In addition, there are certain circumstances where veterans have to report some or all their benefits to the IRS. You have the option to contact a tax professional if this scenario were to happen. They will help determine any taxes that may need to be paid.

Can I Get Other Tax-Free Benefits?

Veterans and their families may be eligible for the following tax-free benefits:

  • Dependency and Indemnity Compensation—If you are an immediate family member of a veteran who died from a service-related injury or illness.
  • Special Monthly Compensation— An additional payment that cover certain disabilities. Loss of a limb, loss of sight, or need for regular aid and attendance

Increase Your VA Disability Rating

If you or anyone you know served in the military, you may need help obtaining a fair disability rating and compensation—contact Veteran Ratings. Veteran Ratings has a 95% chance of success in acquiring the rating and benefits you deserve.

Have a question? On the fence? Then contact us for more information. We are here for you — we proudly serve those who served. Veterans are our only priority because they made this the land of the free through their bravery and sacrifice.

Get The Benefits You Deserve

contact one of our consultants today for a free evaluation of your VA claim

learn more
James Cooper
James Cooper
James Cooper comes from a long line of Veterans and decided to enlist for the Marine Corps at the ripe age of 18-years-old following in his father's footsteps. Shortly after being medically discharged from the service, James decided to pursue a career in journalism. Having battled with the VA for years himself, he began to study the system and commit his career to help fellow disabled veterans.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

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