No. VA does not impose any federal or state tax on benefits given to disabled veterans. Therefore, the amount you qualify for based on your rating is what you receive. You may also be entitled to other benefits depending on your state and disability rating.
Here, we provide information about taxing VA benefits. We will also discuss the benefits you can get and what to do if the Veterans Affairs denies your claim.
Which Disability Benefits Are Not Taxable?
VA provides veterans with service-related injuries or disabilities a wide range of benefits. For example, it issues a non-taxable monthly compensation depending on your rating and number of dependents. Other tax-free benefits VA provides are:
- Grants for buying specially adapted homes
- Grant for remodeling your current property to make it more accessible
- Grant for buying or designing a specially adapted vehicle
Apart from these benefits, the VA can also exempt you from paying other taxes based on your disability rating. For example, if you are 100% disabled, they will not impose any tax on your military retirement. You can also enjoy property tax waivers in some states, depending on the size of your property.
Can You Get a Tax Refund if Your Disability Rating Changes?
If your health condition worsens, you might be entitled to a higher disability rating. This aspect implies you may qualify for more benefits and tax exemptions. In addition, if you have already paid taxes to the IRS, it is possible to request a refund of the excess amount.
The IRS will then investigate the claim and compensate retro benefits based on the date you filed for a higher rating.
Other Benefits Veterans Can Get From the VA
Apart from tax exemptions, you can also receive other benefits from the VA to make your life more comfortable. For example, if you have a military-related disability requiring regular medical care, you will get the services for free at any VA facility. You may also enjoy free healthcare services at non-VA hospitals.
Another healthcare expense the VA will pay for is transportation. This one compensates for all the expenses you incur attending treatment sessions or buying medication. It may also reimburse the cost of bringing along a licensed caregiver or hiring a specialized vehicle. More expenses the healthcare benefits can cover are:
- Physical therapy
- Optical care
- Specialty services
- Cost of buying assistive medical devices or gadgets
Suffering a disability related to military service can affect your working ability. Hence, you may not be able to pay for schooling expenses if you have children. Luckily, VA provides various educational benefits to cover tuition fees for eligible family members.
If your health conditions are not 100% disabling, you can seek a civilian job for sustenance. Still, securing a position without enough experience or knowledge may be tricky.
VA has a Veteran Readiness and Employment program to help you explore your options after leaving active service. This allows you to get the training and vocational rehabilitation services you need to resume your previous career or get into a different field.
What to Do if VA Denies Your Claim
If VA denies your disability or injury claim, you need to finance injury-related expenses using other alternatives. For example, requesting a decision review process can give you a second chance to receive disability benefits.
Still, before requesting this procedure, it is advisable to determine the aspect that might have caused VA to deny your initial claim. First, determine if you provided sufficient evidence linking your disability to military service. After that, check if your Nexus letter includes all the needed information.
You can also look out for other factors that may have led to a denied claim. Such include:
- Your injuries were not severe to warrant compensation
- You provided insufficient information
- You claimed a condition not related to military service
- You did not submit the proper forms
- You submitted the claim beyond the deadline
Since it may be challenging to determine why VA denied your initial claim, it is best to contact a lawyer. They can analyze the documents you presented to identify weaknesses. They will then ensure you get another C&P exam to assess your current health condition.
Another way a veteran disability lawyer can help is by guiding you in the decision review process. This measure will prevent making mistakes that may void your case. It also ensures you submit the proper documentation and use the most suitable decision review option.
Reach out to a Veteran Disability Attorney to Learn More About VA Benefits
VA compensation and disability laws can be complex since they vary based on your rating. Consulting an attorney for VA benefits can help you understand how the VA rates injuries and benefits for various conditions.
Besides, you may gauge if you qualify for higher monthly compensation depending on your health status. Another way a veteran benefits attorney will help is by providing legal guidance and representation. If you need more information on taxing VA benefits and related questions, contact us today.