Will Va Disability Benefits Increase In 2020

What Is A Service Connected Disability

According to the Department of Veterans Affairs, VA Disability Compensation is:

a benefit paid to a veteran because of injuries or diseases that happened while on active duty, or were made worse by active military service. It is also paid to certain veterans disabled from VA health care. The benefits are tax-free.

Department of Veterans Affairs.

If you have a service-connected disability, you may be eligible to receive a monthly compensation payment. You may also be eligible to receive additional compensation if you have a service-connected rating of 30% or higher and have dependents, if you have missing limbs or if your spouse is living with a severe disability.

How Much Does Va Pay For Veterans Disability Compensation

Unlike Social Security disability which is considered total disability, The Department of Veterans Affairs recognizes partial disability up to 100% tied to ever increasing levels of inability to maintain gainful employment.

If a claim is approved, VA will assign a disability rating from 0% to 100%. A 0% disability rating does not pay any benefit. Why then would one want such a rating? The answer is that by receiving a 0% rating, your Regional Office Veterans Service Center has recognized that the disability is service-connected. You have already overcome a large hurdle towards getting a benefit. If, in the future, the disability worsens or causes a secondary disability, then service connection is already established and you now only have to provide evidence that the condition has worsened or that it has caused a secondary condition.

We post the rates for 2020 below. You will notice that the difference between 90% and 100% is significant. This represents the loss of earnings capacity between someone who might possibly still be employed and someone who at 100% is considered unemployable.

Prioritizing The Women And Lgbtq People Who Serve In The Military

The VA must also prioritize providing women and LGBTQ service members equal access to earned benefits, as well as ending sexual harassment against them. Women are the fastest-growing segment of the veteran population. Since 2000, the number of women in the military has grown from 63,000 to 473,000an increase of 310,000, or almost 300 percentand the number of women using VA health care has also tripled since then, growing from 160,000 to 475,000. Women now represent 16 percent of the current U.S. military force. LGBT personnel, meanwhile, are estimated to make up 6.1 percent of service members. A 2020 GAO report found that the VAs inconsistent collection of sexual orientation and gender identity data has limited its ability to assess health outcomes for LGBT veterans.

Despite all the indispensable services that women in uniform deliver to America, a great deal of those women have been subject to sexual assault, and many have chosen not to reenlist as a result. In April 2021, the VA took a step in the right direction to improve care for women and LGBTQ veterans, as well as the approximately 25 percent of veterans who are people of color, by committing to review its existing policies with an eye toward making them more inclusiveand designing and implementing more inclusive policies going forward.

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How We Assign Smc Levels L Through O

We assign SMC levels based on very specific situations and combinations of situations, including:

• The amputation of one or more limbs or extremities
• The loss of use of one or more limbs or extremities
• The physical loss of one or both eyes
• The loss of sight or total blindness in one or both eyes
• Being permanently bedridden
• Needing daily help with basic needs , also called Aid and Attendance

Select an SMC letter below to learn more about the specific situations and combinations of situations that fall within that designation.

You may receive an SMC-L designation if any of these situations are true for you:

• Youve had both feet amputated, or
• Youve had one foot amputated, and have lost the use of the other foot, or
• Youve had one hand and one foot amputated, or
• Youve had one foot amputated, and have lost the use of one hand, or
• Youve had one hand amputated, and have lost the use of one foot

• Youve lost the use of both feet, or
• Youve lost the use of one hand and one foot

• Youve lost sight in both eyes , or
• Youre permanently bedridden, or
• You need daily help with basic needs

You may receive an SMC-L 1/2 designation if any of the these situations are true for you:

• You have blindness in one eye and total blindness in the other eye with only the ability to perceive light, or
• You have blindness in both eyes, and have lost the use of one foot

You may receive an SMC-M designation if any of these situations are true for you:

Are Your Veterans Benefits Taxable

Find out if you need to report the veterans benefits you receive as income on your tax return.

• Taxes

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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Changes In Family Status For Va Disability Compensation

It is important to contact the VA whenever there are changes in your family status, as your VA disability pay rates may change as a result. If you have a 30% disability rating or higher and are supporting qualified dependents such as a spouse, child, or parent, you may be eligible to receive a higher VA disability payment. If your disability rating is 20% or lower, changes in your family status do not affect your payment.

Standard Va Disability Claims

With standard VA disability claims, the VA gathers evidence and compiles all supporting documents.

If the VA is unable to obtain a needed document, they may require your help. When help is required, it typically applies to documents not held by a federal agency, such as private medical records, employer information, and documents from state or local governments.

As with all claims programs, be prepared to provide your DD214 , service treatment records, VA medical records, and private medical records about your claim. Those needing help applying for their VA disability claim may also work with an accredited attorney, claims agent, or Veterans Service Officer .

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Providing For Dependents And Survivors

The VA pays eligible survivors of those who die in the line of duty or from service-related injuries and diseases. This benefit, known as Dependency and Indemnity Compensation , can extend to parents of deceased service members.

Another VA benefit available for survivors is the survivor pension program. This is for low-income, un-remarried surviving spouses and unmarried children of deceased veterans with wartime service.

Military employees have the option of paying premiums to participate in the Survivor Benefit Plan , an insurance plan that helps account for lost income when the service member dies. Eligible survivors receive inflation-adjusted monthly payments.

The government also offers life insurance options for veterans, including Service Disabled Veterans Insurance, Veterans Group Life Insurance and Family , Traumatic Servicemembers Group Life Insurance , and Veterans Mortgage Life Insurance. These low-cost options allow veterans to provide financial security for dependents.

The government pays a death gratuity of $100,000 to the next of kin for armed service members who die on active duty or while traveling to or from active duty. This payment is also available for the family of service members who die in other circumstances, such as while training or traveling to or from training.

Va Cola Increase 59% For Retirees And Disabled Veterans In 2022

The annual Cost-of-Living Adjustment will increase by 5.9% for 2022. This marks the highest increase that the VA has made since 2009! This will lead to a significant increase in next years VA disability rates and monthly compensation for Veterans and their surviving spouses.

What is the Cost-of-Living Adjustment ? Every fiscal year, the Social Security Administration sets forth an updated cost-of-living adjustment , based on the percentage increase in the Consumer Price Index for Urban Wage Earnings and Clerical Workers . The CPI-W measures the change in prices of goods and services over time.

After the U.S. Bureau of Labor Statistics calculates the monthly CPI-W, the SSA pulls data from the third quarter of the previous fiscal year to the third quarter of the current year to determine the COLA for the upcoming year.

In the fall, the Senate passes new legislation to allow a cost-of-living increase for veterans benefits. Then, on December 1, the Department of Veterans Affairs will adjust veterans monthly compensation amounts to reflect the updated cost of living. Veterans can expect to collect their newly adjusted benefits starting December 31.

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What Other Benefits Can I Get With Va Disability

Planning For Medical Expenses In Retirement

Eligible veterans and their dependents have access to health benefits through the Tricare program offered by the government. They are provided with hospital and outpatient care based on whether treatment is considered a need. VA health care will be based on factors including income level and length of service. Retired service members and their families have a variety of options to select from in choosing which Tricare plan is best for their needs. Plans are also available for retired National Guard or reserve members.

Veterans should dedicate a portion of their savings from pensions, civil income, annuities and other retirement accounts to medical expenses that are not covered by the VA or health insurance.

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Big Increase For Va Disability In 2022

In this episode of theSITREP, Paul covers the new rates for VA Disability in 2022 just issued by the Department of Veterans Affairs. To access the new VA Disability tables, visit https://www.va.gov/disability/compensation-rates/veteran-rates/ or to see about adding dependents to your VA Disability, visit https://www.va.gov/view-change-dependents/. This episode is part of a weekly, video series that answers questions about VA disability be sure to SUBSCRIBE so you dont miss future episodes! Links for additional videos about VA disability, VA home loans, VA health care, and more are below.

Find additional episodes of theSITREP at https://www.newengland.va.gov/sitrep

ADDITIONAL PLAYLISTS BY TOPIC

VA Home Loans & Refinancing | https://youtube.com/playlist?list=PLY7mRNUcQyMQyJ4_VSG55iLUfPaI0aVrx

VA Service-Connected Disability | https://youtube.com/playlist?list=PLY7mRNUcQyMTobxlCFgiT7-fpoO4_AdIp

VA Health Care | https://youtube.com/playlist?list=PLY7mRNUcQyMSPkJwkqtbJe-BEqTM_LLKC

ADDITIONAL INFORMATION ABOUT VA

The Department of Veterans Affairs has three, separate administrations aimed to serve our countrys Veterans with an assortment of benefits that address the unique needs of every Veteran. To be sure you are interacting with the proper administration within VA, here are short descriptions for each VA administration:

#theSITREP #VAbenefits #VANewEngland

Q1: What Do I Need To Do To Get My Payment As Soon As Possible

If you received a Disability Award and are receiving other monthly Veterans Affairs Canada program benefits, or if you received a Disability Award payment within the last two years, you will automatically get a letter confirming the amount of your additional lump sum payment.

If you are a Canadian Armed Forces member/Veteran and received a Disability Award more than two years ago and are not currently receiving other monthly Veterans Affairs Canada program benefits, please update your address and banking information now by calling 1-866-522-2122 or through My VAC account.

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What Are The New Benefits For Veterans

Qualifying For Individual Unemployability Benefits

To be eligible for Individual Unemployability Benefits you must meet the following criteria:

• You must have at least one service-connected disability rated at 60% or higher, OR
• You must have two or more service-connected disabilities, with at least one of them rated at 40%, AND a combined disability rating of 70% or more.

In addition to the criteria listed above, you must be able to show that these disabilities make it impossible to maintain steady employment sufficient to sustain you and your family above the poverty level.

If you require frequent hospitalizations that impede your ability to hold down a job, this could also help qualify you for the VA individual unemployability benefit.

For more information on Individual Unemployability benefits, visit www.va.gov.

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Social Security Increase Numbers Broken Down By Benefit Type

The latest COLA change isnt as big as the one we saw last year . But with no Social Security increase in 2015 or 2016, we believe any raise is worth celebrating! Heres how the numbers break down, starting in January 2020:

• Supplemental Security Income The maximum SSI payment for individuals goes up $12/month for couples, it increases $18/month. If you currently get $771/month in SSI benefits, your payments will go up to $783/month starting in January 2020.
• Social Security Disability Insurance The highest monthly SSDI payment in 2019 was $2,861. Starting in January 2020, that amount goes up another $150/month, raising the maximum SSDI payment available to $3,011. However, most current SSDI beneficiaries wont see that much extra money in next years checks. According to the SSAs COLA fact sheet, the average SSDI beneficiary today receives $1,238/month. Starting in January 2020, the federal government adds another $20/month, bringing the average monthly SSDI benefit up to $1,258.
• Social Security retirement In 2019, the average retiree receives $1,479/month in Social Security benefits. On January 1, 2020, that average retirement benefit rises to $1,503/month. While this puts just $288 more into each retirees pocket, at least its something. Much like SSDI, the max Social Security retirement payment available each month jumps from $2,861 to $3,011.

Will Chained Cpi Replace Cpi

Chained CPI is a new method for measuring inflation and was recently adopted with the new tax plan. Chained CPI dampens inflation by as much as 0.2% to 0.3% which has many advocacy groups concerned that this method will carry over to COLA. Few people are against a better measurement of inflation, in fact, many advocacy groups believe even the CPI-W is not the best measurement for retirees, however, Chained CPI many contend would be a step backward.

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Other Va Disability Benefits

The term VA disability compensation refers specifically to the cash compensation directly arising from your VA disability rating. Depending on your circumstances, you may qualify for additional VA benefits. For example, if your service-related disabilities make it impossible for you to sustain gainful employment, you may qualify for VA Individual Unemployability Benefits.

This is important because it may allow certain veterans to receive the same monthly benefit as someone with a 100% disability rating.

Q: I Received A Letter Saying That I Can Expect A Payment Within Two Weeks But I Never Applied For Anything Can You Explain

No application is required for the additional payment related to Disability Award increase. Because you received a Disability Award and we had your up to date information, we were able to calculate the amount of your additional payment and deposit the payment into your bank account/or make the payment by cheque.

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With Dependents Including Children

Find the dependent status in the left column that best describes you. Then look for your disability rating in the top row. Your monthly basic rate is where your dependent status and disability rating meet.

If you have more than one child or your spouse receives Aid and Attendance benefits, be sure to also look at the Added amounts table, and add these to your amount from the Basic rates table.