Veterans Day Highlights Overlooked Financial Benefits

Veterans and military families may qualify for tax breaks and financial support that are not automatic, making it worthwhile to review eligibility when filing taxes or planning for retirement. VA disability compensation is generally exempt from federal income tax, but military retirement pay and other income may be taxed separately; disability compensation also does not count as earned income for the Earned Income Tax Credit. Other potential tax benefits include deductions for qualifying unreimbursed Guard and Reserve travel and permanent-change-of-station moving expenses, tax-free combat-zone pay, and extensions to file for some deployed service members. Veterans may also qualify for Social Security disability or income benefits, but VA and Social Security use separate eligibility rules and require separate applications. A review of available VA benefits can also uncover support related to income, housing, education, medical costs, or retirement.