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One of the first questions veterans have when they receive their first VA disability benefits payment is, “Do I have to pay taxes on this?” You may ask the same question if you received a large back paycheck or if you were recently awarded a new benefit.
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Woods and Woods Weekly Update

Do you have to pay taxes on VA benefits?

Tax documents with writing on them. An ink pen and a computer mouse are laying on the papers.

When the VA issues disability payments to veterans, it doesn’t deduct federal, state, Social Security, or Medicare taxes, nor does the IRS require you to claim VA disability income as part of your gross income. This includes total individual unemployability (TDIU) and Combat-Related Special Compensation (CRSC). In fact, there are limited circumstances that would allow a veteran who is collecting disability payments to receive a federal tax refund.

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Bill allowing veterans to collect full benefits gets new push from supporters on Capitol Hill

U.S. capitol building

Leading lawmakers and veterans groups are renewing their push for a bill that would dramatically expand benefits for veterans injured in combat. The Major Richard Star Act would ensure all service members who medically retire have full access to both military retirement pay and VA disability benefits. 

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VA plans to cut 10,000 jobs this year, mostly from medical sites

Hospital staff standing in a hallway in a hospital.

VA leaders plan to cut about 10,000 full-time jobs from agency offices in 2025 after last year’s hiring focus led to a larger-than-expected workforce. The cuts represent about 2% of the total VA employee count of more than 458,000, the largest total in department history. Most of the 10,000 cuts will come from medical care sites where retirements and departures were lower than expected last year.

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VA and DoD end ban on IVF treatments for unmarried and same-sex couples

Man holding a baby in his arms while sitting on a
couch.

Service members and veterans will be allowed to access in vitro fertilization treatment regardless of their marital status or sexual orientation. Under the expansion of care, the Defense Department and the VA will offer IVF benefits to eligible service members and veterans regardless of marital status and for the first time allow the use of donor eggs, sperm, and embryos.

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Bard PowerPort™ lawsuit

If you or someone you know has experienced infection, blood clotting, cardiac arrhythmia, or other serious health issues due to a PowerPort™ migrating, fracturing, or leaking in the body 90 days or more after it was implanted, you may be eligible to join the lawsuit against Bard. 

Contact us about Bard PowerPort™

VA Disability Claims Guide: IBS, GERD, Hemorrhoids, Liver Conditions, and Digestive System Cancers

VA Disability Claims Guide: IBS, GERD, Hemorrhoids, Liver Conditions, and Digestive System Cancers

"I would highly recommend the law firm of Woods & Woods to any veteranseeking VA disability benefits. After being denied appeals filed by myself to increase my current 40% disability rating, I decided to engage a veteran’s law firm. As a result of their efforts, by filing an appeal to Veterans Board of Appeals, I was granted a TDIU rating.
Thank you to the wonderful members of the Woods & Woods firm for achieving this rating for me."


- A.J., an Army veteran from Florida

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