Wartime veterans with a low income and their survivors may qualify for a tax-free pension. These monthly payments from the Department of Veterans Affairs (VA) are based on financial need. Veterans Pension and Survivors Pension Eligibility  Both pensions base eligibility on the veteran’s service time, financial need, and age or status of the veteran or survivor.  Learn about Veterans Pension eligibility Learn about Survivors Pension eligibility How to Calculate VA Pensions The amount for both pensions is the difference between the recipient’s "countable" income and the annual pension limit set by Congress. Calculate Veterans Pension Calculate Survivors Pension How to Apply for a VA Pension See how to apply for a veterans pension, including online. See how to apply for a survivors pension. Aid & Attendance (A&A) and Housebound Benefits If you receive a VA pension, you may also qualify for Aid & Attendance or Housebound benefits. You can only get one of them. Each has its own qualifications. Veterans Pension Versus Military Retirement Some people confuse military retirement benefits with a VA pension. Here are two ways to tell the difference: Military retirement is taxable but a VA pension is tax-free.   Military retirement uses years of service (not necessarily wartime). But a VA pension is based on wartime service and financial need.  Veterans Pension Versus Disability Compensation In some cases, veterans can receive disability compensation. It's not the same as the VA pension. Here’s a way to tell the difference: Disability compensation is for an illness or injury that happens because of or was made worse by your military service. It’s not income-based and war service is not required.  A VA pension is for war veterans with a low income and who may have a disability that is not service-related.