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Are VA Benefits for Assisted Living Taxable?
Date Updated: July 26, 2024
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With over a decade of dedicated experience, Andrea Miller boasts an extensive background in healthcare writing and editing. Her expertise spans various facets of the healthcare industry, with a particular focus on nursing, senior care, Alzheimer’s disease, and public health. Andrea has also contributed her editorial talents to reputable publishers in the Philadelphia region, complementing her extensive freelance work.
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VA benefits for assisted living are not taxable. Many veterans use the Aid and Attendance program to cover long-term care expenses such as help with activities of daily living. The IRS doesn’t tax Aid and Attendance benefits as income.
Are other VA benefits taxable?
Most VA benefits are non-taxable. Veterans don’t pay federal taxes on disability payments, assisted living benefits, workers’ compensation payments, education benefits or military disability pensions.
However, the IRS does tax VA retirement payments. You must include this income on your annual federal tax return as a pension. Enter the amount on Form 1040, Lines 5A and 5B. Exclude any portion of your retirement pay that goes toward an annuity under the Survivor Benefit Plan.
How do you apply for VA assisted living benefits?
You apply for VA assisted living benefits by completing and submitting Form 21-260. Either mail it to the VA Pension Management Center in your state or bring it to the VA regional office in your area. If you have health insurance through the VA, file a claim for the medical portions of your assisted living care, such as the initial doctor’s appointment on admission.
When you apply for VA assisted living benefits, include information from your healthcare provider. They should detail the types of help you need with activities of daily living and the medical issues that cause you to require assistance.