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Most VaA benefits tax exempt
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Warriors, tax season will soon be upon us, and every year I get asked
for the reference that states that VA Compensation and Pensions are
exempt from taxes. The following is taken directly from the Code of
Federal Regulations.
38 – CFR, VETERANS’ BENEFITS, PART IV — GENERAL ADMINISTRATIVE PROVISIONS, CHAPTER 53 — SPECIAL PROVISIONS RELATING TO BENEFITS Sec. 5301. Non assignability and exempt status of benefits (a)(1) Payments of benefits due or to become due under any law administered by the Secretary shall not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary. It seems complicated but put in laymen’s terms, compensation and pensions are not taxable. Now let’s look at the 3.6 percent pay raise for 2012 and what it brings to the wounded warriors or their surviving spouses. First are the new improved pension numbers. A veteran alone is $1,021. If the veteran is housebound, it increases to $1,248, and if the veteran requires aid and attendance, the maximum is $1,702. If the veteran has a dependent, it is $1,337; housebound with dependent increases to $1,564; and if the veteran has a dependent and requires aid and attendance, the maximum is $2,019. If you are a surviving spouse of a wartime veteran, your improved pension is now raised to $684; if you are housebound, it is $837; and if you require aid and attendance, it is $1,094. Please remember that these are maximum amounts that will be offset by Social Security, etc. For veterans receiving compensation payments, the following include the 3.6 percent raise: • 10 percent service-connected veterans now receive $127. • 20 percent service-connected veterans now receive $251. • 30 percent service-connected veterans now receive $389 if single, $435 with spouse. • 40 percent service-connected veterans now receive $560 if single, $622 with spouse. • 50 percent service-connected veterans now receive $797 if single $874 with spouse. • 60 percent service-connected veterans now receive $1,009 if single, $1,102 with spouse. • 70 percent service-connected veterans now receive $1,272 if single, $1,380 with spouse. • 80 percent service-connected veterans now receive $1,478 if single, $1,602 with spouse. • 90 percent service-connected veterans now receive $1,661 if single, $1,800 with spouse. • 100 percent service-connected veterans now receive $2,769 if single, $2,924 with spouse. If it concerns you, chances are it is concern of other veterans. Feel free to contact me at 541-962-8802. I am located at the Center for Human Development, 2301 Cove Ave, La Grande.
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