With tax season looming ever closer, veterans and civilians alike are gathering their W2s, 1099s, 1098s, and other combinations of letters and numbers. As a veteran, you still have to file taxes every April just like everyone else, but there are a few advantages and differences you should be aware of. If you are wounder about Are VA Benefits Taxable?
Several tax preparation services offer free or discounted tax help for eligible veterans. The VA compiled several of these resources for your convenience. Whether you’re going to a private CPA, using one of the big boys like H&R block, or using a DIY software, it never hurts to ask if there’s a discount for veterans.
Are VA Benefits Taxable for Pensions? Yes!!
Any money you get from pension payments after retiring are considered taxable, and you must report these payments when you file your taxes.
If you get benefit payments from the VA for disability compensation, that money is not taxable and therefore does not need to be reported on your taxes.
Disability benefits aren’t the only VA disability which is not taxable. The IRS does not require veterans to pay taxes on the following.
Retroactive
If you get a retroactive directive from the VA, the IRS might allow you to amend your previous filings. This isn’t always the case and this process can get complicated, so it’s best to consult a tax expert for help.
