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VA disability compensation is nontaxable to the veteran or survivor and is not reported on any tax forms. The veteran will receive a report showing any adjustments due to cost-of-living adjustments (COLA) or other changes affecting the monthly benefit during the year.hus, for the 2012 tax year, the adjustment is $2,294 ($1,614 ($538 3) + $680 ($340 2)). (3) The adjustment is reported on the Other income line of Form 1040 as a negative number with the notation VA Disability Adjustment See Attachments included on the dotted line.
The 2018 VA Disability rates saw a 2.0% increase effective December 1, 2017 and is the largest increase since 2012. The 2018 VA Disability rates saw a 2.0% increase effective December 1, 2017 and is the largest increase since 2012. The 2017 VA Disability rates saw a small increase of 0.3 percent. This is after seeing no increase in 2016. Find out how a government shutdown will impact your pay and benefits. VA disability rate tables for veterans with a disability rating of 10 percent or higher. Eligible veterans with disabilities can receive up to $3,527.22 per month as a tax free monetary benefit. Veterans with disabilities can use the following VA disability charts to determine how much financial assistance they are eligible for.