Veterans Disability Compensation is a monetary benefit available to veterans who are disabled as a result of an injury, a physical illness, or a mental illness that was incurred or aggravated while on active duty. The amount of compensation is based upon the degree of disability (calculated as a percentage). For a veteran who has been evaluated to have a 30 percent or more disability, an additional amount of compensation may be made for dependents.
Veterans with certain disabilities or who served under some conditions or specific time periods may be eligible for additional special compensation (see Chapter Six for more information on this). Additionally, Veterans Disability Benefits are not considered taxable income and are not taxed by federal or state governments.