{"id":30445,"date":"2017-11-10T08:00:23","date_gmt":"2017-11-10T14:00:23","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=30445"},"modified":"2020-04-21T16:08:42","modified_gmt":"2020-04-21T21:08:42","slug":"are-veterans-benefits-taxable","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/filing\/are-veterans-benefits-taxable\/","title":{"rendered":"Veterans Day: 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 acknowledge veterans on this day as well. We honor not only their service but also seek to proactively educate the various tax implications unique to veterans.<\/p>\n

Can veterans benefits be taxed? 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

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Military Retirement Pay<\/strong><\/h2>\n

If you receive military retirement pay\u2013based on age or length of service\u2013this income is taxable and is included in your income as a pension. Any reductions in your retirement pay, including what’s paid via survivor annuity under the\u00a0Survivor Benefit Plan (SBP)<\/strong><\/a>, should not be included in your income.<\/p>\n

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Military Retirement Disability Pay<\/strong><\/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 these payments from your income.<\/p>\n

You can exclude the disability payments from your taxable income if any of the following conditions apply:<\/p>\n