are veterans benefits taxable?
Military and Government Disability Pensions. You do not have to pay income tax on certain military and government disability pensions. VA Disability Benefits. You need not pay income tax on disability benefits you receive from the Department of Veterans Affairs (VA). Don't include such payments in your gross income on your tax return. These VA benefits include: 1  education, training, and subsistence allowances. 2  disability compensation and pension payments for disabilities paid either to veterans or their families.