Should Your VA Disability Income Be Taxed?
While the federal income tax considers VA disability compensation non-taxable, certain situations may treat it as income. Support from loved ones and government assistance programs are often interconnected. Don’t miss out on crucial tax benefits – consult a veteran-savvy tax pro to get personalized advice tailored to your situation. For veterans navigating divorce with VA disability ratings, these benefits are generally not considered marital property. You’ll find this protection specifically outlined in federal law, leaving no room for interpretation. However, if military retired pay has been waived to receive VA disability, this can alter its classification during a divorce. State laws vary on whether VA disability is considered income for child support or alimony. Many states include it in gross income calculations, while others don’t. The Supreme Court has-greenlit the inclusion of benefits in support calculations, giving a shout-out to the original spirit behind these benefits: to offer a helping hand to veterans and their families when they need it most.