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Johnso9c
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Is V.A. Disability Compensation considered nontaxable income?

 
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JohnB5677
Expert Alumni

Is V.A. Disability Compensation considered nontaxable income?

Military Disability Compensation is tax-free. 

  • Veterans with disabilities that are the result of a disease or injury incurred or aggravated during active military service is not taxable.
  • However, Military retirement pay is fully taxable. 
    • If you receive a pension based on your age or length of service, it is taxable.

Please see additional details at VA News.

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