{"id":14766,"date":"2016-11-11T07:38:00","date_gmt":"2016-11-11T13:38:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=14766"},"modified":"2021-08-12T11:49:17","modified_gmt":"2021-08-12T16:49:17","slug":"are-benefits-for-veterans-taxable","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/lifestyle\/military\/are-benefits-for-veterans-taxable\/","title":{"rendered":"Are Veterans Benefits Taxable?"},"content":{"rendered":"

Each year on Veterans Day, our country honors men and women who served in our military. At H&R Block, we think about our veterans on this day as well \u2013 not only as we honor their service but also how we can help educate the various tax implications for veterans.<\/p>\n

So, are veterans benefits taxable? Here\u2019s a list of benefits a veteran may receive once they have retired from duty, and how each of those benefits will be treated for tax purposes:<\/p>\n

Military Retirement Pay<\/h2>\n

If you receive military retirement pay \u2013 which is based on age or length of service \u2013 it is taxable and is included in your income as pension. If there is a reduction in your retirement pay to provide a survivor annuity under the Survivor Benefit Plan (SBP)<\/a>, that amount should not be included in your income.<\/p>\n

Military Retirement Disability Pay<\/h2>\n

If you receive disability retirement pay as a pension, annuity or similar allowance for personal injury or sickness, you may be able to exclude the payments from your income. You can exclude the disability payments from your taxable income if any of the following conditions apply:<\/p>\n

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  1. You were entitled to receive a disability payment before September 25, 1975;<\/li>\n
  2. You were a member of a listed government service or its reserve component, or were under a binding written commitment to become a member, on September 24, 1975;<\/li>\n
  3. You receive the disability payments for a combat-related injury. This is a personal injury or sickness that;\n