Income Countable for VA Pension Benefit Purposes

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.

Income Limits to Qualify VA Pension Beneifts

This post is the first part of a three part series.  In this post you will learn if you make, or will make, too much money to qualify for VA pension benefits.  But don't dismiss your ability to collect VA pension benefits based on the limits you read here.  The second post discusses what types of income streams count towards this income limit.  The third post will discuss what items that you subtract from your income for VA pension benefit purposes, which could leave you with $0 income.

Well, this first part of the series is relatively simple.  If you apply for non-service connected pension benefits from the VA, you need to have made less income than the benefit amount for the year.  For example, if you are an unmarried veteran seeking housebound benefits, which is $ 14,457, you must have an income less than $ 14,457 to receive the VA pension benefit.  Therefore, you cannot claim VA pension benefits if your countable income exceeds the benefit you are seeking.

Take your income, determine which type of VA pension benefit you seek (whether the basic VA pension benefit, housebound, or aid and attendance), and subtract your income from the benefit amount that you seek.  The result will be the amount of benefit you will receive from the VA.

In the future posts, you will learn how your income can be reduced for the purposes of your VA pension benefits application.  What you perceive as income may not be counted as income for VA pension purposes or you may be able to take deductions from the income.  Either method will result in you receiving additional cash to pay for long term health care expenses.   


Kellen Bryant, Esquire, is a Jacksonville, Florida elder care lawyer specializing in VA aid and attendance benefits.