Tax Relief Programs for Seniors, Permanent Disability, and Disabled Veterans (2024)

FAQs

Do disabled Veterans get federal tax breaks? ›

You may also qualify for general disability tax breaks

As a veteran, you may also be eligible for other non-veteran-based disability tax breaks, such as: The Tax Credit for the Elderly and Disabled. The Child and Dependent Care Credit, if you're married and you and your spouse paid someone to help take care of you.

Note that if you had a recent increase in your disability rating or were granted combat-related special compensation, you may be eligible for a tax refund, but this can only be applied to the year VA reassessed your disability level.

Normally, the IRS may not garnish VA disability benefits, even if the Veteran in question files for bankruptcy or finds themselves in major financial debt. However, the IRS can garnish VA disability benefits if the Veteran doesn't make legally required alimony payments or child support payments.

Since VA disability income is non-taxable, it generally doesn't have to be reported.

Benefits for the Surviving Spouse of a 100% Disabled Veteran

If your spouse dies with a 100% disability rating, you may be entitled to Dependency and Indemnity Compensation (DIC). For 2024, the base rate of compensation for a surviving spouse is $1,612.75/month.

Texas is the #1 overall state for veteran benefits because of its generous property tax exemptions for disabled veterans rated at 10% or more along with no state income tax and free in-state college tuition for veterans and their dependents via the Hazelwood Act.

In general, in order to qualify for the Disabled Veterans' Exemption: The veteran must meet the definition of a disabled veteran, as described below, for the purposes of the exemption. The claimant for the exemption may be the disabled veteran or the unmarried surviving spouse of the veteran.

The VA can reduce a 100% rating only if there is material improvement in the Veteran's condition. It must provide evidence that the Veteran's condition has improved such that there has been an observable change in their ability to function under the conditions of daily life. Five-Year Stabilized Ratings.

Under that phaseout, veterans whose gross household income was $170,000 or higher in calendar year 2023 and who would have received the average annual payment would no longer receive any disability compensation from VA in calendar year 2024.

Do I need to file taxes if I only receive VA disability? ›

Disability benefits you receive from the Department of Veterans Affairs aren't taxable. You don't need to include them as income on your tax return. Tax-free disability benefits include: Disability compensation and pension payments for disabilities paid either to veterans or their families.

3.957 in the VA code of regulations, the VA cannot sever your benefits for service connected disability if it's been in effect for 10 or more years. The only exceptions would be if you obtained VA disability benefits fraudulently, were dishonorably discharged, or didn't complete requisite service.

On March 31, 2021, legislation was approved by the Virginia General Assembly exempting qualified Disabled Veterans and their spouses from local personal property taxes on one motor vehicle (passenger car, pickup, or panel truck) that is owned (not leased) and regularly used by or for the veteran.

The answer is yes, it is possible, but only under certain conditions. Retired veterans who have a disability rating of 50% or higher, or qualify for Combat Related Special Compensation (CRSC), are eligible to receive both benefits in full.

Texas is often considered one of the best states for disabled veterans. Noteworthy benefits include: Housing Grants: Texas offers various housing grants to disabled veterans, including those for home modifications and weatherization.