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Q544:  I was told by a VA person that my veteran disability pension will not have to be listed as income on my income taxes, etc. Is that true?

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A1:  Unless some new regulations have been adopted I doubt the information is correct. All income must be listed even tax-exempt disability income.  (WW)  10/20/20

   

A2:  This is true, no taxes on disability income.  (MH)  10/20/20

   

A3:  That is true regarding federal income tax; and may be true for most state income tax. Disability tax is not taxable income.  (TB)  10/20/20

   

A4:  Yes, that is true.  (JS)  10/20/20

    

A5:  Yes it is TRUE. But if you are receiving "Military Disability Pension" payments and receive a Form 1099, you may have to report those payments.  (BH)  10/20/20

  

A6:   Yes, VA is a disability payment and is exempt 100% from taxes.  (PD)  10/20/20

    

A7:  Yes, that is true. You do not even receive a tax income statement from the VA on your disability, and therefore there is no disability income to report.  (JF)  10/20/20

     

  

  

  

  

  

  

      

A8:  Yes, you are 100% tax exempt on disability awards.  (RM)  10/20/20

    

A9:   True. Non taxable.  (TT)  10/20/20

   

A10.  VA disability is listed on taxes, but cannot be taxed as income. Check tax laws in your state.  (TP)  10/20/20

   

A11:  They are correct. It is not counted as income for taxes.  (JK)  10/20/20

   

A12:  Yes it is.  (KP)  10/20/20

      

A13:  They told you correctly but any other income say social security, retirement is taxed. They may ask for listed but is a untaxable income. That does not mean it could be in the future just that they could change it and may eventually but for years now has been nice . If you have your taxes done make sure they do not include it in taxable income if they do go elsewhere to have them done for they do not know what they are doing.  (JM)  10/20/20

     

A14:  No it is not taxable and do not have to report it in your income tax form.  (OM)  10/20/20

     

A15:  Yes, that is true. You do not even receive a tax income statement from the VA on your disability, and therefore there is no disability income to report.  (JF)  10/20/20

  

A16:  Yes, that is true. Your V.A. disability is tax free from Federal, State and local taxes.  (GR)  10/20/20

    

A17:  I am 100% service connected but was discharged with 60% and I was told years ago by IRS that my service disability was not taxable by anyone. Call the PVA or DAV in your area to be sure.  (AJ)  10/20/20

      

  

  

  

  

  

  

  

  

  

   

A18:  Your disability income will not be included in the 1099 you receive as taxable income.  (BB)  10/20/20

    

A19:   Yes, that is true.  (KW)  10/20/20

  

A20:  Yes that is true. VA disability income is definitely tax free.  (TO)  10/20/20

   

A21:  VA Disability is not Federally taxed. Since I do not have a State Tax, I can not answer for your State. If you don't get a form like a 1099 from the VA, it is probably not taxed but I would check with your State Board of Taxation.  (LE)  10/20/20

        

A22:  That is true. VA disability is not taxable.  (RC)  10/20/20

    

A23:  Absolutely! Disability Compensation is totally tax exempt at both The Federal and State level. Since you do not declare it, if you have No other income, your Social Security is not taxable, either. So you  Will be below the income level requiring you to file.  (WC)  10/20/20

   

A24:  I believe that is correct. I've never claimed them.  (AR)  10/20/20

      

A25:  Your VA pension is not considered as income! You don't have to list it as income! My bookkeeper told me it's NOT earned income! Nontaxable! Check with your tax person if you have to add it to your income if go over X amount of dollars! As they my consider it as Gross Income! Hope this helps!  (AA)  10/20/20

   

 

 

 

 

 

 

 

 

     

     

A26:  Disability compensation is awarded by the VA for injury or disease determined to be the result of military service. It is non-taxable. VA Pension is awarded by the VA is for veterans who served during war time service and their income is below the poverty level. It is considered as income as is taxable. However different states have different laws for state income tax regarding veterans. I recommend you contact an Accredited VSO with the Am Legion, VFW, Am Vets, DAV or another Veterans Service Organization and they will explain the differences. Also, who you get to prepare your yearly income tax should easily give you the answer. If not I suggest you change tax preparers.  (GH)  10/21/20

          

A27:  From the IRS Website:

(https://www.irs.gov/individuals/information-for-veterans)
VA Disability Benefits
Disability benefits received from the VA should not be included in your gross income. Some of the payments which are considered disability benefits include:

Disability compensation and pension payments for disabilities paid either to Veterans or their families,
Grants for homes designed for wheelchair living,
Grants for motor vehicles for Veterans who lost their sight or the use of their limbs, or
Benefits under a dependent-care assistance program.
If you are a military retiree and receive your disability benefits from the VA, see IRS Publication 525 for more information.  (RM)  10/21/20

     

A28:  Yes it's true.  (ML)  10/21/20

   

A29:  That is correct. VA disability compensation is neither taxable nor reportable to the IRS. Also, it is non-restrictive in terms of other income limitations. You can earn as much money as you can (through employment of self employment) and still receive non reportable/non taxable VA disability compensation to the fullest extent of your disability rating. But, don't mix your apples with your oranges or your peaches. State tax laws are separate and could be different from federal tax laws. Check with a tax professional or do the research on the internet as it may apply to the sate from which your income is derived (earned). Lastly. and very importantly, Social security and unemployment compensation based on disability or unemployability DO NOT fall under that classification. As for the IRS reporting process, this aforementioned compensation is reportable and MIGHT be taxable. Once again, consult with a tax professional for correctness.  (GC)  10/21/20

      

A30:   You are correct, it is a tax free benefit. You will not receive a tax statement at the end of the year and you are not required to report it as income.  (RJ)  10/26/20