How does my VA affect my social security and taxes?

Understand how VA disability awards impact your Social Security and taxes, and learn how recent laws affect Veterans' benefits.

NONTAXABLE & NO OFFSETTING AGAINST SOCIAL SECURITY AWARDS

 

Are VA disability awards taxable?

NO!   VA disability awards, whether for service-connected or non-service-connected disability (e.g., VA pension benefits), are not considered earnings and you do not need to report them in your tax returns.

 

Are VA Service-Connected Disability Awards offset by Social Security Disability Awards?

NO! The Veterans Administration will not reduce your money benefits based upon monies received from a Social Security Award. However, the Social Security Administration may reduce your money benefits from its award based upon the monies received from your VA disability award, depending upon the type of the Social Security award.