Tip #: Take Advantage Of Free Tax Services
There are plenty of resources that provide free tax filing services to veterans. Some of the best tax software on the market also include tools to help veterans claim eligible tax benefits. The IRS website also links to several tax services that veterans and other taxpayers can take advantage of. As a veteran, you may qualify for free financial coaching. You may also qualify for free tax preparation services through The Volunteer Income Tax Assistance program, and you can file income taxes for free through the IRS website using their free tax filing software.
Disabled Veterans Life Insurance Program
The Disabled Veterans Life Insurance program is a VA program that provides insurance for disabled veterans who have a service-connected disability rating from 0% to 100%. The basic program, commonly referred to as RH Insurance, insures eligible Veterans for up to $10,000 of coverage. Totally disabled veterans who are unable to work may apply for additional coverage of up to $30,000. Click HERE to review eligibility and application requirements.
Definition Of A Disabled Veteran
The Disabled Veterans’ Exemption is available to a qualified veteran who:
- Is blind in both eyes. Being blind in both eyes means having a visual acuity of 5/200 or less, or concentric contraction of the visual field to 5 degrees or less.
- Has lost the use of two or more limbs. Losing the use of a limb means that the limb has been amputated or its use has been lost by reason of ankylosis, progressive muscular dystrophies, or paralysis.
- Was totally disabled as a result of injury or disease incurred in military service. Being totally disabled means that the United States Department of Veterans Affairs or the veteran’s military branch has rated the disability at 100 percent or has rated the disability compensation at 100 percent by reason of being unable to secure or follow a substantially gainful occupation. If a veteran has received a disability rating of 100 percent from the USDVA, the county assessor should consider the veteran qualified for the exemption without requiring further documentation of disability, such as medical files.
The Disabled Veterans’ Exemption is also available to an unmarried surviving spouse of a deceased veteran who:
- Qualified for the exemption during their lifetime or
- Would have qualified for the exemption is they had been alive on January 1, 1977 or
- Died from a service-connected injury or disease.
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How Veterans Can Tap Into State Tax Benefits
Every state operates its own VA office, and it’s worth your time to seek out yours to ensure you receive the proper and most advantageous tax benefits and programs for your situation. By now you know that states offer varying veterans’ benefits, tax exemptions or waivers, and your state may offer a benefit unavailable to veterans of other states. Refer to the list of state VA offices below for contact information for your state’s office. One caveat: You may be stationed in one state temporarily but qualify for VA benefits in another state. Your VA benefits are tied to the state where you reside permanently.
As A 100% Disabled Veteran Must I File A Tax Return
Please see this great answer by TurboTax Doninga:
If you have Social Security Disability payments, they would be reported on a federal tax return, however, if Social Security is the only income that you would be reporting, a federal tax return does not have to be filed. However, if you do have any other income to report, then enter the benefits reported on SSA-1099. VA disability payments are not reported on your return.
To enter your Social Security benefits reported on form SSA-1099
- Scroll down to Retirement Plans and Social Security
- On Social Security , click the start or update button
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State Dmv Fee Exemption
Most Americans drive cars, and states are quick to tax you for owning one. Some states will give disabled veterans a free pass from vehicle excise taxes, registration fees and other fees. Veterans may need to provide proof of disability. Your state may limit your exemption to one motor vehicle that you own and operate for personal use and not for a business. Some states may provide partial waivers of registration fees Connecticut, for instance, has provided license/fee exemptions for veterans and special vehicle registration fee exemptions for Medal of Honor recipients and former prisoners of war.
Here’s another instance where state rules vary widely. See the table State Tax Benefits at a Glance on this page to learn if your state waives any DMV fees for you.
Can I Opt Out Of Part B Medicare
A. Yes, you can opt out of Part B. (But make sure that your new employer insurance is primary to Medicare. … Medicare insists on an interview to make sure you know the consequences of dropping out of Part Bfor example, that you might have to pay a late penalty if you want to re-enroll in the program in the future.
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Valuation Appraisals For Hst Tax
Due to regulations instituted by the Province of Ontario on the 1st of November 2004 all vehicles over 20 years of age will now require a HST appraisal or insurance document to allow registration of the vehicle in your name.
From the Ontario Government:
Payment for retail sales tax on the greater of the wholesale value or purchase price from the bill of sale. Please note that for a passenger and light commercial vehicle 20 years or older, the Retail Sales Tax is payable on the greater one of the following: the purchase price, the replacement value for insurance purposes, or the appraised value. An appraisal document or insurance document showing the value of the vehicle must accompany the bill of sale.
Are Your Veterans Benefits Taxable
Find out if you need to report the veterans benefits you receive as income on your tax return.
After you leave the military, veteran benefits may play a key role in helping you enjoy life as a civilian. You may receive a variety of benefits, from a pension to disability compensation to the GI Bill. If youre like many veterans, an important question occurs to you at this time of year: are VA benefits taxable?
The answer isnt as simple as the question. Whether or not your VA benefits are taxable depends on which benefits you receive and what your circumstances are. Its always a good idea to consult a tax professional about your individual circumstances. However, the following general information can help you understand when you mayor may notowe taxes.
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Disabled Veterans May Be Eligible To Claim A Federal Tax Refund Based On:
- an increase in the veteran’s percentage of disability from the Department of Veterans Affairs or
- the combat-disabled veteran applying for, and being granted, Combat-Related Special Compensation, after an award for Concurrent Retirement and Disability.
To do so, the disabled veteran will need to file the amended return, Form 1040-X, Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040, 1040-A or 1040-EZ. An amended return can be e-filed or filed by paper for most returns. For tax years 2019 and later, a paper filed original return can be amended electronically or by paper. Disabled veterans should include all documents from the Department of Veterans Affairs and any information received from Defense Finance and Accounting Services explaining proper tax treatment for the current year.
Please note: It is only in the year of the Department of Veterans Affairs reassessment of disability percentage or the year that the CRSC is initially granted or adjusted that the veteran may need to file amended returns.
Under normal circumstances, the Form 1099-R issued to the veteran by Defense Finance and Accounting Services correctly reflects the taxable portion of compensation received. No amended returns would be required, since it has already been adjusted for any non-taxable awards.
Do You Need Health Insurance If You Have Va Benefits
Veterans Affairs Programs In California, individuals are required to have minimum essential coverage or face a penalty when they file their taxes. The good news is that all VA health care programs meet this requirement, and veterans who are enrolled in any of these programs will not be subject to the penalty.
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Employment And Va Disability Pay
If youre working and you have a service-connected disability, you must pay federal income tax on the income from your job. Additionally, you may have to pay state and/or local taxes. Your states tax laws will determine whether or not your income is taxable. However, employment doesnt impact whether or not your VA disability pay is taxed, no matter what your disability rating is or employment status.
How Do I Transfer A Personalized License Plate To A New Car
Complete a Special Interest License Plate Application form indicating that you want to reassign the license plates to another vehicle, hold the license plates for future use, or release interest in the license plates. If you are retaining license plates for future use, most have an annual retention fee.
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What You Need To Register For Ebenefits
To properly register with the eBenefits system and obtain your official DS Logon account, youll need to already be enrolled in the U.S. Department of Defenses Defense Enrollment Eligibility Reporting System . DEERS is a computerized database containing personal and eligibility information on service members and their eligible family members. Active duty and retired service members are registered in DEERS automatically. You may find that you need to update your personal information, and you can do that on the website. If you find that you are not enrolled in DEERS, you must correct the error and update your information before you can proceed.
With your DEERS enrollment, you can obtain your DS Logon account in one of three ways:
- Online through the eBenefits website.
- In person through a VA regional office. Bring your two I-9 identity documents. Once your identity has been verified, youll receive an activation letter via U.S. mail typically within 12 business days. Use the information in this letter to activate your account online.
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Tip #: Know Your Eligibility
Don’t make assumptions about what you’re eligible for. Every benefit stipulates its own eligibility rules, some more detailed than others. For example, to receive a Specially Adapted Housing grant, veterans must prove they are experiencing very specific physical losses or loss of use in certain body parts.
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Louisiana Property Tax Exemptions
Louisiana offers a property tax exemption on the first $75,000 of the assessed value of a primary residence to all qualifying homeowners, according to the Louisiana VA.
The state increases this exemption to $150,000 for veterans with a 100% VA rating for a service-connected disability or a 100% individual unemployability rating.
A proposed 2022 amendment would exempt these veterans from paying any state property taxes and would also extend these tax benefits to surviving spouses.
It would also create an additional tax exemption for veterans with at least a 50% VA disability rating.
Does Va Disability Count As Income For Taxes
VA Disability Benefits Disability benefits you receive from the Department of Veterans Affairs aren’t taxable. You don’t need to include them as income on your tax return. Tax-free disability benefits include: disability compensation and pension payments for disabilities paid either to veterans or their families.
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Claim Filing And Effective Dates
low-income exemption only
Additional Va Disability Compensation For Dependents
Disabled veterans with a current VA disability rating of 30% or higher are eligible for an increase in monthly VA disability compensation to help support your family. Disabled veterans can apply online for free and add/remove dependents at any time on the VA.gov website inside their VA disability claim online application. The application typically takes 30 days or less to add or remove dependents.
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Va Disability Compensation Pay
One of the best disabled veteran benefits available is VA disability compensation pay. If you have a disability condition that was caused or made worse by your active-duty military service, you may be eligible to receive tax-free monthly compensation. Veterans can prepare and file their own VA disability compensation claim for FREE by opening a Notice of Intent to File on the VA.gov website for a VA disability increase or first-time filer.An Intent to File puts the VA on notice that youre planning to file a VA claim, which is important because it sets an effective date for when you could start getting benefits while you prepare your disability claim and gather supporting documents . Click HERE to view the 2022 VA disability compensation pay rates.
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Are Va Benefits Taxable
In addition to VA disability compensation, if you receive one of these VA disability benefits listed below, you dont have to pay any taxes on them.
More Disabled Veteran Tax-Free Benefits:
- Payments under the VAs work therapy program
- VA healthcare benefits
- Veterans insurance proceeds and dividends
Do Va Disability Benefits Count Toward The Earned Income Tax Credit
The Earned Income Tax Credit is a refundable tax credit for low-income Americans that, in some cases, enables them to receive a tax refund exceeding what they paid in taxes throughout the year.
However, even though a veteran earned their VA disability benefits through military service and the disability they suffered on behalf of the country, these benefits are not considered earned income and therefore do not count towards the EITC. Military pension also does not count towards the EITC.
It is important to note that VA disability does not reduce or eliminate tax credit for veterans who have other income that qualifies them for the EITC.
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More Tax Information For Active Military & Veterans
IRS Members of the Military Tax InformationA list of nine IRS documents focusing on federal income tax preparation for military members, including those in combat zones.
IRS Filing Extensions and Tax Return Preparation Assistance for Military Personnel Stationed Abroad
Guidance and forms that employers can use to claim the tax credit for hiring veterans.
GI Bill is a registered trademark of the U.S. Department of Veterans Affairs. More information about education benefits offered by VA is available at the official U.S. government Web site.
About the Author
The MoneyGeek editorial team has decades of combined experience in writing and publishing information about how people should manage money and credit. Our editors have worked with numerous publications including The Washington Post, The Daily Business Review, HealthDay and Time, Inc., and have won numerous journalism awards. Our talented team of contributing writers includes mortgage experts, veteran financial reporters and award-winning journalists. Learn more about the MoneyGeek team.
Jobs For Disabled Veterans Provided By Hireveteranscom
HireVeterans is the Worlds #1 Most Trusted Marketplace to Search and Find Top Jobs for Veterans. HireVeterans.com is a FREE job board and placement service into top civilian companies looking to hire veterans, disabled veterans, and military spouses. Disclaimer: VA Claims Insider, LLC owns and operates HireVeterans.com. Click HERE to search and find jobs for veterans at top civilian companies.
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+ Best 100 Percent Disabled Veteran Benefits: The Ultimate Guide
I hope you enjoy reading this blog post.
If you want to learn how to implement these strategies to get the VA benefits you deserve, to speak with a VA claim expert for free.
In this post, we will be covering the 25+ Best 100 Percent Disabled Veteran Benefits in detail, along with tips, strategies, and lessons learned to help veterans get the VA disability benefits theyve earned for their honorable service.
Weve also compiled a complete list of the top 100 percent VA disability benefits for veterans in 2022 along with action-steps so you know HOW to get them.
In our experience at VA Claims Insider, many disabled veterans with a 100% VA rating dont realize the incredible state and federal benefits they qualify for by law.
This means you could be missing out on thousands of dollars of VA disability benefits you deserve for you and your family.
Alright, lets explore some of the incredible state and federal benefits available to veterans with a 100 percent VA disability rating.
- #14: CHAMPVA Medical Insurance
- #15: Dental Care
- #26: Disabled Veteran Student Loan Forgiveness Program