This post is the second part of a three part series. The purpose of this series of posts related to income is to help us create a formula for income for VA pension purposes. The VA pension is a need based benefit, with an income level qualifier. First, I discussed the income limits in order to obtain VA pension benefits.
In this post you will learn what items that you count for VA pension benefit purposes. You will add up the dollar amount for each income stream to arrive at the number that you will need to bring down in order to increase you benefit payout.
Unfortunately, the VA counts income from a broad amount of income sources. The VA counts "payments from any kind from any source shall be counted as income during the 12-month annualization period in which received unless specifically excluded under §3.272." 38 CFR 3.271.
The common income streams that the VA counts are social security payments, pension payments, rent from rental properties, salary before any taxes are taken out, stock dividends, profits from a business, income from trusts, an inheritance, and interest from CDs. There is an exception for money gifts if the cash is used for paying health costs for the veteran.
Strangely enough, you will have to look in the future for 12 months to see what you will make. This task becomes tricky when you are dealing with fluctuating business profits and losses, varying dividend and rental payments, and infrequent interest payments.
Items that do not count as income generally include: cash out value of life insurance policies attributed to premium payments, the cash in value of savings bonds, profits from the sale of property, and the value of free or donated room and board for the veteran.
Basically, you count all income coming in. One of the keys to qualification is the subject of my next post on deductions from countable income.
Kellen Bryant, Esquire, is a Jacksonville, Florida elder care attorney specializing in VA aid and attendance benefits.
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