Are you a Veteran with a disability or other health problem related to your service? You may be eligible for VA Compensation.
What is VA Compensation?
Compensation is a monthly cash payment to Veterans with an injury or disease caused or made worse by military service. Compensation is meant to compensate a Veteran for loss of working capacity due to disabilities related to the Veteran’s service. Service-connected disabilities are assigned a disability rating (in increments of ten starting with 0% up to 100%) by the VA. The amount of financial compensation depends on the rating the VA assigns and whether the Veteran has any dependents. There are some situations and disabilities that are so significant that the VA will grant Special Monthly Compensation above the amount the Veteran would otherwise receive based on their rating.
Who does the VA consider to be a “Veteran”?
A Veteran is a person:
• Who served in the active military, Reserves, or National Guard, and
• Whose character of service is deemed to be under conditions other than dishonorable. (Please note that this is different than a former service member’s character of discharge.)
Who can get VA Compensation?
The Veteran must have a current illness or disability that was “at least as likely as not” caused or made worse by the Veteran’s service or other service-connected disability.
What do “in the line of duty” and “active service” mean for a disability?
“In the line of duty” means the Veteran’s disability is linked in some way to a period of active service.
Sometimes the branch of the military in which the Veteran serves decides if a Veteran’s injury was “in the line of duty,” or directly caused by the Veteran’s service. If so, the VA is required to follow that decision unless “it is patently inconsistent with the requirements of the laws administered by the Department of Veterans’ Affairs.”
“Active service” includes:
• Active duty; or
• Any period of active or inactive duty for training. This typically applies to Reservists or members of the National Guard.
The injury did not have to occur on the battlefield to be “in the line of duty.” If an injury or disability occurred while on active service, and that injury or disability was not the result of the Veteran’s willful misconduct, that injury or disability may qualify for VA Compensation. A qualifying injury or disability include conditions caused or made worse by events taking place while the servicemember was on leave.
Can a National Guard member or Reservists qualify for VA Compensation?
Yes, a person in the National Guard or Reservists can get benefits when they were:
• on full-time duty for training purposes, or
• called to duty to fill the needs of the Armed Forces during war or other national emergency.
However, members of the National Guard are only eligible for VA Compensation stemming from their “federal service.” National Guard members ordered into the active service of their state are not eligible for VA Compensation related to that service.
Can a Veteran work and still receive VA Compensation?
Yes. Unlike VA Pension, which is based on income, entitlement to VA Compensation is not typically tied to a Veteran’s employment status. However, if the Veteran receives Total Disability Individual Unemployability (TDIU or IU) from the VA or the Veteran’s rating is specifically based on their ability to work, like some mental health conditions, the VA may use the Veteran’s employment as evidence that their condition has improved and reduce the Veteran’s rating.
Is there any limit on the assets a Veteran can have in order to qualify for VA Compensation?
No, a Veteran’s assets do not affect eligibility for VA Compensation .
Can a Veteran get both VA Compensation and a Pension?
No, the Veteran must choose to receive one or the other.
Can a Veteran get both VA Compensation and military retirement?
If a Veteran is rated under 50%, the VA will offset the Veteran’s VA Compensation with their military retirement, meaning the Veteran will only get the higher of either their retirement or VA Compensation. Once a Veteran is rated at 50% or more, that Veteran will then be entitled to both VA Compensation and military retirement.
This does not apply to separation pay. If a Veteran received separation pay as part of their discharge from service, the amount they received will be deducted from their VA Compensation. This applies even if the VA Compensation is awarded years after discharge. Please note that it is the Veteran’s responsibility to notify the VA if they received separation pay once the Veteran is awarded a VA disability rating. If the Veteran does not inform the VA in a timely manner, they run the risk of the VA applying an overpayment and withholding monthly compensation until the overpayment is returned to the VA.
What is the “standard of proof” for a VA Compensation claim?
• In order to make a successful VA Compensation claim, the evidence needs to show a Veteran’s disability is “at least as likely as not” connected to their service.
• This means the evidence must show there is at least a 50 percent chance that the Veteran’s disability was caused or made worse by their service.
• This “benefit of the doubt” standard means if the evidence is half for and half against service connection, the Veteran should get the benefit of the doubt and be awarded a rating.
What is “presumption of sound condition”?
When a Veteran enters the service, they typically undergo an entrance exam. If that exam does not document a pre-existing condition the Veteran is assumed to be in “sound condition.” If the VA tries to argue that a Veteran’s claimed condition preexisted their service, but the entrance exam does not document the condition, the VA must show there is “clear and unmistakable evidence” that the condition preexists the Veteran’s service. This is a very high standard and one the VA often gets wrong.
What is the effective date of the award if a Veteran is awarded VA Compensation?
The general rule is the effective date is the later of:
• the date the VA gets the original claim for benefits, or
• when the claim “arose.” This is typically when the Veteran starts exhibiting the required symptoms of a condition or severity of symptoms to justify a specific rating.
This means a Veteran should file a claim as soon as possible. If the Veteran is unable to promptly file an application for benefits, the Veteran may file an “Intent to File Claim ” using VA Form 21-0966 (as of March 2023). The Intent to File Claim form must identify the claimant and general benefit sought (VA Compensation, Pension, etc.). Once the Intent to File Claim form is received, the VA must send the application form to the Veteran. If the Veteran submits a formal claim within a year of the VA receiving an Intent to File Claim form, the effective date will be the date the VA received the Intent to File Claim form. The Intent to File Claim form only applies to a new claim for benefits and attempts to reopen a claimed condition that was denied over a year prior.
What is the VA’s “duty to assist”?
The VA has a duty to assist the Veteran with the development of their claim. Many times, this requires the VA to provide Veterans with an adequate VA medical examination to diagnose and evaluate their current medical condition. This is called a “compensation and pension examination.” The VA also has a duty to obtain all records held by the Federal Government that may be related to the Veteran’s claim. However, the Veteran must notify the VA of the existence and relevance of these records. This includes service records, Social Security records, and much more.
What is VA Math?
If a Veteran has several rated conditions, they might notice the VA’s calculation of the Veteran’s overall rating is complicated. A Veteran’s overall rating is based on the idea that a person cannot be more than 100% disabled, so each individual rating is subtracted from the remaining employability of the Veteran.
VA Math is a game of percentages; the higher a Veteran is rated, the harder it is for the Veteran to get to the next compensation level. It might be easier to think of VA Math as a pie:
• Veteran has 60% for sleep apnea, 30% for PTSD, and 10% for tinnitus. Traditional math would put Veteran at 100% disabled. However:
o If you take 60% (sleep apnea) of the pie, you are 40% employable (or 60% disabled).
o Subtracting 30% (PTSD) of 40% is 24% employable (or 76% disabled).
o 10% of 24% leaves the Veteran 21.6% employable (or 78% disabled).
• All calculations are rounded up to the nearest 10%. So, in this example, Veteran is only 80% disabled.
What is a claim for “Total Disability Based on Individual Unemployability” (TDIU or IU)?
When a Veteran has:
• A service-connected disability rated 60% or higher; or
• Multiple disabilities, one of which is rated 40% or higher with a total rating of 70% or higher
that prevents the Veteran from obtaining or keeping “substantially gainful employment,” they must be compensated at the 100% compensation level regardless of the Veteran’s actual overall rating.
What is Special Monthly Compensation?
There are over 15 special circumstances when a Veteran may be entitled to a higher rate of compensation than what they are currently rated at. One situation includes things like the loss of use of a limb or a reproductive organ. Another form of special monthly compensation awards Veterans more compensation if they have once condition that is rated at 100% along with other conditions that, when rated without the 100% condition, add up to 60%. If a Veteran believes they qualify for any of the special circumstances, they should submit a new claim for this benefit.
To apply:
Fill out VA Form 21-526EZ, Application for Disability Compensation and Related Compensation Benefits.
Go to the VA website for fillable forms, summaries of programs and how to apply for benefits.