What Is VA Disability Compensation?
Disability compensation is a benefit paid to a veteran because of injuries or diseases that happened while on active duty, or were made worse by active military service. It is also paid to certain veterans disabled from VA health care. The benefits are tax-free.
Who Is Eligible?
You may be eligible for disability compensation if you have a service-related disability and you were discharged under other than dishonorable conditions.
How Much Does VA Pay?
The amount of basic benefit paid ranges, depending on how disabled you are.
Note: You may be paid additional amounts, in certain instances, if:
- you have very severe disabilities or loss of limb(s)
- you have a spouse, child(ren), or dependent parent(s)
- you have a seriously disabled spouse
What is VA Pension for veterans?
Pension is a benefit paid to wartime veterans who have limited or no income, and who are age 65 or older, or, if under 65, who are permanently and totally disabled.
Who is eligible?
Generally, you may be eligible if:
•you were discharged from service under conditions other than dishonorable,
AND
•you served at least 90 days of active military service 1 day of which was during a war time period. If you entered active duty after September 7, 1980, generally you must have served at least 24 months or the full period for which called or ordered to active duty (There are exceptions to this rule),
AND
•your countable family income is below a yearly limit set by law (The yearly limit on income is set by Congress),
AND
•you are age 65 or older, OR, you are permanently and totally disabled, not due to your own willful misconduct.
What is countable income for veterans pension eligibility purposes?
This includes income received by the veteran and his or her dependents, if any, from most sources. It includes earnings, disability and retirement payments, interest and dividends, and net income from farming or business.
There is a presumption that all of a child's income is available to or for the veteran. VA may grant an exception in hardship cases.
What about net worth?
Net worth means the net value of the assets of the veteran and his or her dependents. It includes such assets as bank accounts, stocks, bonds, mutual funds and any property other than the veteran's residence and a reasonable lot area. There is no set limit on how much net worth a veteran and his dependents can have, but net worth cannot be excessive. The decision as to whether a claimant's net worth is excessive depends on the facts of each individual case. All net worth should be reported and VA will determine if a claimant's assets are sufficiently large that the claimant could live off these assets for a reasonable period of time. VA's needs-based programs are not intended to protect substantial assets or build up an estate for the benefit of heirs.
Are there any exclusions to income or deductions that may be made to reduce countable income?
Yes, there are exclusions. The following are examples of what may be excluded:
•Public assistance such as Supplemental Security Income is not considered income.
•Many other specific sources of income are not considered income, however, all income should be reported. VA will exclude any income that the law allows.
•A portion of unreimbursed medical expenses paid by the claimant after VA receives the claimant's pension claim may be deducted. (These are expense you have paid for medical services or products for which you will not be reimbursed by Medicare or private medical insurance.)
•Certain other expenses, such as a veteran's education expenses, and in some cases, a portion of the educational expenses of a child over 18 are deductible.
If I am already receiving monthly payments or a service-connected disability can I get a VA pension too?
You cannot receive a VA non-service connected pension and service-connected compensation at the same time. However, if you apply for pension and are awarded payments, VA will pay you whichever benefit is the greater amount.
How Can You Apply?
You can apply by filling out VA Form 21-526, Veterans Application for Compensation and/or Pension.
