How to Claim Veterans Disability Benefits for Taxes

By Robin Hewitt

If you're a veteran who receives disability benefits, you may be confused about filing federal income taxes. What to claim, where to claim it and whether it's necessary to file tax forms are common questions. Although relatively simple, the answers depend on your personal circumstances.

Realize that veterans disability benefits are considered non-taxable income. If this is your only means of support, you do not have to file an income tax return. If you are married and your spouse is employed, you file a joint form, but do not add your disability income to your gross income.

Research any federal tax changes for the past year to see if you are eligible for a refund. For example, stimulus payments have, in the past, allowed veterans to receive a special refund per qualifying family member. The qualifying veteran had to fill out an income tax return to receive the stimulus payment even if she didn't have to file.

Check your state and city income tax laws. While veterans' disability is not taxable income, you may qualify for heating or other credits that you would not otherwise receive because of the exempt filing status. If this is the case, you will want to file taxes in order to receive a payment for your heating contractor to offset your winter bills.

Contact your Veterans Affairs office if you have detailed questions, need help finding forms or filling the forms out. There are special tax advocates whose sole job is to aid disabled veterans file tax forms and determine qualifications. They will also be able to inform you of recent changes to the tax laws that are retroactive, and you may qualify to file an amended tax return and get a rebate on taxes you paid in the past on disability related expenses.

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