Taxes – FASFA – non-taxable income reporting – other federal and state agencies

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I constantly see comments from uninformed veterans telling others not to report VA Disability because it's nontaxable income. And that's true, you don't report VA Disability to the IRS. You also don't report VA Education benefits to the IRS – such as Post 9/11 GI Bill, DEA, VR&E, MGIB, VEAP, REAP, MGIB-SR, etc. because these are also nontaxable income.

That doesn't mean other state and federal agencies can't ask for VA disability information – usually these agencies are asking about all income coming into the household and per state and federal laws, these agencies can require you to report VA Disability. Being non-taxable does not mean non-reportable.

FASFA

FASFA does require you report your VA Disability for your income when you, the veteran applies, and as part of the parent's income when a child dependent is fills out the application. But do not to report VA education payments.

The FAFSA form asks for financial information, including information from tax forms and balances of savings and checking accounts.

The 2023–24 FAFSA form asks for 2021 tax information.

The 2022–23 FAFSA form asks for 2020 tax information.

Enter the total amount of veterans noneducation benefits you received in 2021. Veterans noneducation benefits include Disability, Death Pension, Dependency and Indemnity Compensation, and/or U.S. Department of Veterans Affairs (VA) Educational Work-Study allowances.

https://studentaid.gov/2324/help/student-veterans-noneducation-benefits

https://studentaid.gov/help-center/answers/article/fafsa-question-total-of-your-other-untaxed-income-or-benefits

https://studentaid.gov/help-center/answers/article/answer-financial-questions-fafsa-form-disability

Taxes

For the Federal Government, you do not report VA Disability nor VA Education payments on your federal tax returns. I'm not going to address state laws as I haven't read all 50 state IRS rules.

https://www.irs.gov/individuals/tax-exclusion-for-veterans-education-benefits

https://www.irs.gov/individuals/information-for-veterans

https://www.irs.gov/individuals/military/special-tax-considerations-for-veterans

https://www.irs.gov/pub/irs-pdf/p5322.pdf

SSDI & SSI

https://www.ssa.gov/ssi/spotlights/spot-reporting-earnings.htm#:~:text=How%20do%20I%20report%20earnings,a%20mobile%20wage%20reporting%20application.

https://www.ssa.gov/disability/Documents/T2%20Reporting%20%20Disability%20doc%20final.pdf

Social Security and the U.S. Department of Veterans Affairs (VA) pay disability benefits to eligible people and their qualified dependents. However, the programs, processes, and criteria for receiving benefits are very different. Each agency must follow its own definition and requirements. https://www.ssa.gov/people/veterans/

https://soarworks.samhsa.gov/article/ssa-and-va-disability-benefits-tips-for-veterans

Unemployment (not TDIU information)

https://www.dol.gov/sites/dolgov/files/VETS/files/unemployment-benefits-for-student-veterans-fact-sheet.pdf

https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/unemployment-benefits.aspx

https://www.nolo.com/legal-encyclopedia/unemployment-compensation-ex-service-members-ucx.html#:~:text=What%20if%20I%20Am%20Receiving%20Disability%20Compensation%20From%20the%20VA,disability%20payment%20from%20the%20VA.

https://www.careeronestop.org/Veterans/BenefitsAndAssistance/unemployment-benefits.aspx

https://oui.doleta.gov/unemploy/docs/factsheet/UCX_FactSheet.pdf

Food Stamps – SNAP – WIC

https://www.fns.usda.gov/snap/eligibility/elderly-disabled-special-rules

https://www.statesidelegal.org/how-get-food-supplements-disabled-veterans

https://www.fns.usda.gov/wic/ieg-2022-2023

https://www.benefits.gov/news/article/439

If you have additional information – provide legitimate sources from government websites or your comment may be removed.

submitted by /u/SCOveterandretired
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