Who is a veteran?
A veteran is an individual who has served at least 24 continuous months in active duty and hasn’t been discharged with dishonorable status from the same. In fact, spouses, children, and even parents of deceased or disabled veterans are also given the same status.
Do veterans get special tax exemptions?
There are a number of tax benefits laid out for veterans and their families at the federal level. Some of the most common tax benefits are listed herein. The best thing about these is that these benefits are not taxable. Hence, veterans don’t need to report these as income on the federal tax return.
Disability Pension
Disability pension is paid out to war veterans with limited or no income – veterans who are 65 or older, or veterans who’re permanently disabled because of a non-service cause. That is not all! Veterans who are housebound owing to their disability are at times also eligible for an additional A&A – Aid and Attendance benefit. This additional monetary help is applicable for veterans and survivors who require aid and attendance of another individual.
The A&A benefit is only applicable if veterans meet the following conditions:
Disability Compensation
Disability compensation is for veterans who have experienced an in-service disability. In short, it is for veterans whose disability occurred during service, or aggravated during service, or determined by the VA as a direct result of his or her military service. Like the Disability Pension and the A&A benefit, Disability Compensation is also tax-free on both the federal and state levels. Thus, disabled veterans may claim a federal tax refund on two conditions:
- An increase in the veteran’s disability percentage as and when deemed by the VA.
- When a combat-disabled veteran applies for, and is granted the Combat-Related Special Compensation post getting an award for Concurrent Retirement and Disability.
Dependents and Survivors
The VA offers benefits for dependents and surviving loved ones. These include the following:
- A survivor’s pension is paid to the surviving spouse and children of a deceased veteran who had been on active service during a war.
- A death gratuity (a one-time payment) of $100,000 is offered to the surviving family members, to help them deal with financial hardships.
- The VA has a Dependency and Indemnity Compensation payment – a flat monthly disbursement, applicable for survivors. Surviving spouses with dependent children are eligible for additional monthly payment for each child. That is not all! There’s an additional transitional assistance of $250 provided every month.
Education and Training Allowances
Benefits as the Post-9/11 GI Bill help all eligible veterans in gaining finance undergraduate and graduate education or other on-job training. He or she may qualify for the same if:
- He or she has at least 90 days of aggregate active duty service after September 10, 2001, and is still on active duty OR
- He or she is an honorably discharged veteran OR
- He or she was discharged with a service-related disability after 30 days.
Life Insurance
The VA has life insurance benefits in place for veterans and their families – taking into consideration the dangers of active duty in the military. SGLI or Servicemembers’ Group Life Insurance is a group life insurance program for servicemembers.
- The SGLI Traumatic Injury Protection provides payments to servicemembers who encounter traumatic injuries, including the likes of loss of eyesight and limbs.
- Veterans’ Mortgage Life Insurance delivers mortgage protection insurance to disabled veterans approved for Specially Adapted Housing Grant.
- Service-Disabled Veterans’ Insurance is an insurance coverage for veterans with service-connected disabilities. However, veterans with complete disability are eligible for more coverage.
Housing Grants
Veterans and certain disabled service members qualify for housing grants. The SAH or Specially Adapted Housing compensation is designed to help in-service disabled veterans by helping them modify a home to meet their adaptive needs, such as making it wheelchair accessible. Veterans can use the benefit no more than three times – up to the amount allowed.
SAH compensation is applicable only in certain conditions:
- The inability to use or complete loss of lower extremities.
- Blindness in both eyes, coupled with the inability to use or complete loss of lower extremities.
- The inability to use or loss of one lower extremity, coupled with (1) residuals of an injury or organic disease, or (2) the loss of one upper extremity, affecting locomotion without the aid of braces, crutches, or wheelchair.
- The inability to use or complete loss of both upper extremities.
- Severe burn.
Compensated Work Therapy Program
The CWT program assists veterans unable to work and support themselves. Believe it or not, but many CWT members have histories of substance abuse, homelessness, and psychiatric illness. The CWT program helps them with vocational rehabilitation services tailored to their circumstances and unique needs.
Overview
Being a reputable veteran consulting service, we at Veterans for Veterans LLC, help veterans seek benefits they rightfully deserve. At times, veterans aren’t even aware of the tax benefits or special tax exemptions they’re entitled to, and thus they should rope in an experienced veteran consulting service provider to better guide them through the process, heightening their chances of claims settlement and achieving tax benefits they otherwise might have missed.
