Taxes, Benefits, and Loan Discharges for Totally and Permanently Disabled Veterans

There are many perks for former servicemembers who are service-connected at 100% total and permanent disability (TPD). For example, many veterans often wonder whether government benefits are taxable. Benefits received from the Department of Veterans Affairs (VA) are not taxable. Tax-free benefits include compensation and pension payments for disabled veterans and their families.

Additionally, veterans who are considered totally and permanently disabled due to an in-service event do not have to re-pay certain loans. You must submit a TPD discharge application and supporting documentation to the VA to get your student loan charges dismissed, however. It’s advisable to work with a well-versed attorney on your application to ensure you are considered for every benefit for which you qualify.

What do Veterans Need to Provide to Prove TPD?

Former servicemembers must gather evidence and documentation to qualify for any disability rating. Evidence of a diagnosed disability can come from a VA hospital, the Social Security Administration (SSA), or a doctor/physician qualified to make such diagnoses.

It’s possible to qualify for TPD by providing the VA with a copy of:

  • A diagnosis given by a doctor or physician working at any VA hospital
  • A nexus letter provided by a qualified and licensed private doctor or physician

Our attorneys have the resources and connections to get the documentation you need to prove your eligibility for TPD benefits to the VA.

Finally, all veterans who receive a disability rating under 100% for a condition that resulted from or worsened during active duty service can apply for total disability based on individual unemployability (TDIU).

Student Loan Forgiveness for TPD Veterans

A significant perk for veterans rated at 100% totally and permanently disabled is student loan forgiveness, although you must apply for a “TPD discharge” to initiate this process. Interest on student loans will be suspended for up to 120 days after applying for a TPD discharge.

After you submit evidence of your disability and scope of impairment to the VA, there will be an assessment to confirm your eligibility. Once approved, the loan holders can cancel the payments.

If the application does not go through, payments and interest rates will continue. The review time typically lasts 30 days, and the applicant should be notified of the outcome no later than that.

Let Our Team of VA Disability Lawyers Help

To ensure that you receive all the benefits you’re entitled to, and to avoid a denial or delay, it’s important to have a veterans’ disability lawyer by your side. Contact an experienced attorney to learn more about VA disability benefits today.

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