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The Veterans Administration (VA) has numerous programs providing payments to veterans and their dependents. The most common types of VA payments are detailed in this section, but this list does not include all possible VA benefit types.
NOTE VA benefits are not the same as military retirement pay. See MA606TT for military retirement pay.
For MAGI programs, VA benefits are excluded as income.
For the non-MAGI programs, how VA benefits are counted depends on the type of payment. See the table below for details:
If... |
Then the treatment is... |
VA Compensation |
Counted as unearned income. NOTE Compensation payments made to a veteran, or the veteran’s spouse or child are not based on need. Compensation payments made to the parents of a veteran based on a service-connected death are based on need. |
Increase for dependents |
Excluded as income to the veteran. Excluded as income to the veteran and the dependent when paid directly to the veteran who is NOT living with the dependent. Counted as unearned income to the dependent when paid:
NOTE When the customer is the dependent, the customer must ask that the VA pay the benefit directly to him or her. |
Increase for unusual medical expenses |
Excluded. |
VA Pension |
Counted as unearned income. NOTE Most VA pension payments are based on need, except for VA pension payments due to a Medal of Honor or a special act of Congress. |
VA Reduced Pension ($90) |
Excluded. |
Aid and Attendance and Housebound allowances |
Excluded. |
VA Clothing allowance |
Excluded. |
VA Caregivers Payments |
Excluded as income to the veteran. Counted as unearned income to the caregiver. |
Term |
Definition |
VA Aid and Attendance and Housebound Allowance |
An allowance paid to veterans, spouses of disabled veterans and surviving spouses who are in regular need of the aid and attendance of another person or who are housebound. Increases in VA benefits for aid and attendance or housebound allowances are included in the pension or compensation payment. |
VA Pension |
Payments made on the basis of a combination of service and an age of 65 or over, a non service-connected disability or death. |
VA Reduced Pension |
The VA may reduce the VA benefit to a maximum of $90.00 per month for veterans or surviving spouses of veterans who meet all three of the following criteria:
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VA Clothing Allowance |
A lump sum allowance is paid in August of each year to a veteran with a service-connected disability who uses a prosthetic or orthopedic appliance, including a wheelchair. The clothing allowance is intended to help pay the increased cost of clothing due to the wear and tear caused by the appliances. |
VA Increase for Dependents |
A VA payment to a veteran or a veteran’s surviving spouse that is increased because of a dependent. Pensions, compensation, and educational benefits can all be increased for dependents.
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VA Increases for Unusual Medical Expenses |
The VA considers unusual medical expenses when determining some needs-based pension and compensation payments. Unusual medical expenses may result in a lump sum payment, an increase in the ongoing VA pension or compensation payment, or both. |
VA Caregiver Payment |
Payments made to a family member for providing caregiver services to a veteran who has:
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Income is first obtained through the Federal and State Data Services Hubs. If needed, other proof includes:
Benefit pay stub benefit explanation if it lists the types of benefits included in the gross payment;
Letter from the VA;
A printout of the customer’s compensation from the customers’ online VA account;
A collateral contact using the VA Automated Payment Line;
A Request for Verification of VA Information (DE-210) form completed by the VA;
VA PARIS Report using the current DE-210W VA Worksheet for Renewals.
See VA Income Procedures for instructions on how to verify and enter VA income and reporting to the VA when a pension recipient enters or leaves a nursing home.
This requirement applies to the following programs:
Program |
Legal Authorities |
ALTCS SSI-MAO Medicare Savings Program |
42 USC 1382a(2)(B) 20 CFR 416.1103(b)(1) 20 CFR 416.1121(a) |
Adult Caretaker Relative Pregnant Woman Child KidsCare |
42 CFR 435.603 42 CFR 457.10, 300, 301 and 315 |