Veterans with service-related health disorders are eligible for VA disability compensation, a monthly tax-free payment. Payment amounts are based on a veteran’s disability rating, ranging from 0% to 100%.
Veterans must have a direct link between their current health condition and military service to qualify for disability compensation. They must also have a household income below certain thresholds.
Cost-of-Living Adjustment (COLA)
The VA disability payment schedule for 2023 outlines the specific rates and payment dates for veterans receiving disability benefits. Annual increases in VA disability rates ensure that the amount you receive keeps pace with inflation. A cost-of-living adjustment, or COLA, is what this is. In 2023, the COLA is 8.7% and represents a significant year-over-year boost in your compensation rate. This is the highest COLA increase in almost 40 years.
The VA’s disability compensation rates are linked to Social Security’s COLA adjustments because Congress designed them this way to make sure disabled Veterans get enough income to live a dignified life. Using the chart below, you can see how your rate will change next year. Some disabled Veterans also qualify for special monthly compensation (SMC), an extra tax-free monetary benefit awarded to help with expenses like the cost of care from a live-in nurse. I
Special Monthly Compensation (SMC)
For veterans with severe disabilities, the VA sometimes provides an additional monthly compensation known as Special Monthly Compensation (SMC). SMC is higher than regular disability benefits. This money is tax-free and can help offset care costs for certain conditions. SMC is divided into levels L through O. Each level covers different conditions and varying degrees of severity. For example, SMC Schedule L provides additional compensation for those with loss of use of a body part or organ, while SMC Schedule O is for those who are permanently bedridden. To receive SMC, you must have a current and chronic diagnosis of a disabling condition tied to your in-service event. You must also have evidence that shows a nexus between your current disability and the in-service event, such as medical records, buddy letters, and medical nexus forms. Typically, SMC replaces your regular disability payments. The exception is SMC Schedule K, which adds to your existing income.
Direct Deposit Dates
VA disability compensation is a tax-free monetary benefit from the federal government that some veterans receive. The amount of the benefits varies depending on a veteran’s disability rating and household.
A veteran’s disability rating is based on the severity of their service-related health conditions. The higher the rating, the more money they receive. A VA C&P examiner assesses veterans’ symptoms to determine if they cause disabling impairments that affect lifestyle, employment and social functioning. The VA assigns a disability rating between 0% and 100%. VA disability payments are usually deposited on the first day of the month unless that date falls on a weekend or a holiday. To help veterans know when their payments will be sent, we created this free 2023 VA pay schedule calendar. The calendar is easy to use and will be updated monthly as the VA announces new rates. The pay dates are based on direct deposit, which means your check will arrive in your bank account 1-3 days earlier than the listed date.
Final Decision Date
For veterans who served during wartime, VA disability compensation can ease financial burdens. The tax-free payments are based on the severity of a veteran’s service-related health condition. Learn more about eligibility and how to apply. If you have a service-connected disability, you may also be eligible for the Aid and Attendance benefit. To qualify for disability compensation, you must show that your health condition is related to a service-related event or made worse by service. Evidence to support this nexus includes medical records, buddy letters, and medical nexus statements. You must provide all of these documents to be approved for disability benefits.
If you are a military disability retiree, you may be entitled to additional payments, such as the Aid and Attendance benefit, if you meet income and asset requirements.
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