VA benefits are not taxable income. Combat pay can be excluded too. If military service made it hard to pay, you may get more time and an interest limit.
Do not include VA benefits in your income. That includes disability pay and VA education allowances.
Enlisted members can exclude all military pay for each month in a combat zone.
Combat zone service extends IRS deadlines by 180 days after you leave, plus the days you had left.
If service hurts your ability to pay, you can ask to delay tax due before or during service, and pay within 180 days of release.
Steps that help
- Do not report VA benefits as income.
- Ask about combat zone extensions before you pay penalties.
- Send your orders to the IRS if you ask for the 6% rate.
Help that may fit
Results depend on your situation. Not every case qualifies.
Common questions
Are VA disability benefits taxable?
No. The IRS says not to include VA benefits in income.
Can I get more time to pay because of my service?
You may. Pub. 3 explains the combat zone extension and the delay for service members who cannot pay because of service.
Can I get help if I already owe?
Yes. A tax pro can look at payment plans, penalty relief and other options for your case. Results depend on your situation. Not every case qualifies.
