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VA Disability Compensation Process

What is VA Disability Compensation?

If a person serves in the military and is a veteran that has a service related disability, then the person would qualify for the Veteran Affairs (VA) Disability Compensation. These types of benefits also help veterans that have injuries or disabilities or dieses that happened when they were on active duty or if the injuries or disease was made worse by the active military service. Most of these benefits are considered to be tax free. Read below where Experts have answered many more questions about VA Disability Compensation.

If a person receives military retirement pay and VA disability compensation, can the person receive Social Security without being penalized by the other programs?

In most cases the veteran’s benefits that they get will not be affected if they receive Social Security. The veteran should receive their Social Security depending on the amount that they paid into the Social Security program, but the amount of Social Security benefits may be lower based on the person’s VA disability. The law regarding VA Disability Compensation is as follows:

“2) The reduction of a benefit otherwise required by paragraph (a)(2) of this section is not to be made if: (i) The law or plan under which the periodic public disability benefit is payable provides for the reduction of that benefit when anyone is entitled to a benefit under title II of the Act on the basis of the earnings record of an individual entitled to a disability insurance benefit under section 223 of the Act and that law or plan so provided on February 18, 1981. (The reduction required by paragraph (a)(2) of this section will not be affected by public disability reduction provisions not actually in effect on this date or by changes made after February 18, 1981, to provisions that were in effect on this date providing for the reduction of benefits previously not subject to a reduction); or (ii) The benefit is a Veterans Administration benefit, a public disability benefit (except workers' compensation) payable to a public employee based on employment covered under Social Security, a public benefit based on need, or a wholly private pension or private insurance benefit.”

If a person is receiving VA Disability Compensation, would this be considered taxable?

In most cases, the VA Disability Compensation that a military veteran receives is not taxable. The IRS states that a veteran is not to include their benefits that they receive through the VA Disability Compensation when they file their tax returns for the year.

If a person is receiving VA Disability Compensation and expects the amount to increase, would the former spouse payment be reduced and if it is would the person be responsible for re-compensation?

If the veteran’s VA Disability Compensation is increased, then the retirement pay that they receive would decrease and so would the amount that the person pays to the former spouse. If the former spouse receives the money through the Former Spouse Protection Act, then the payment that they receive will decrease if the retirement benefits decrease due to the fact that they former souse receives a percentage. The person would not have to pay the difference due to the fact that if the retirement decreases, then the payment would as well.

If a person receives VA Disability Compensation, would that be included in the income part of a divorce?

When a person is receiving VA Disability Compensation and is going through a divorce, then all income, regardless of where the income comes from, is included in the divorce proceedings. In most cases when the divorce court is figuring the amount that is to be paid, then the court would look at the money and use it to determine the amount owed. The former spouse may also have claim to the retirement benefits that the person pays as well. The couple would need to read the divorce decree and follow what the decree sets out for them to do.

VA Disability Compensation is a benefit that our veterans receive if they are injured or disabled while serving in the military. When a person is dealing with the benefits, they may have questions regarding the laws and rules of the VA Disability Compensation. When these questions arise, then the person would need to consult an Expert to gain the answers to any questions that they may have.
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