Thanks to the COLA increase, veterans will receive increased disability payments from the Veteran Benefits Administration via the US Treasury Department in 2025. The new pay rates will be effective from 01 December 2024. Eligible veterans can claim this benefit during service, after retirement, or after separation due to serious injury or illness.
Veterans Affairs Pay Dates 2025
The federal government offers monthly support to military personnel who have injury, illness, or disability during service, post-service that appears later, and pre-service that worsens during the service. The Department of Veteran Benefits Administration authorizes and processes the VA benefits whereas the Treasury Department processes the payment to the recipient’s account.
The administration processes the VA disability payment on the first day of the month for the previous month with the intent that recipients get the payment early to cover their or their family’s expenses. However, if the payday falls on a public holiday or weekend, the recipients can expect the payment on an earlier working day of the payment date.
Based on the VA disability payment rule, the eligible recipients can mark the following pay dates for each month in 2025:
Payment Month | Payment Date |
January | 31 Jan 2025 |
February | 28 Feb 2025 |
March | 01 Apr 2025 |
April | 01 May 2025 |
May | 30 May 2025 |
June | 01 July 2025 |
July | 01 August 2025 |
August | 01 Sep 2025 |
September | 01 Oct 2025 |
October | 31 Oct 2025 |
November | 01 Dec 2025 |
December | 31 December 2025 |
How much will you receive via VA Disability benefit in 2025?
The VA benefits payout is also adjusted with Social Security benefits with the annual COLA increase. The Social Security Administration has computed a 2.5% COLA increase for 2025, so veterans can expect a 2.5% rise in their payouts.
As the new rates will come into effect from 01 Dec 2024, the officials will determine or publish the compensation rates for 2025 on the effective date.
So, based on the 2025 COLA, veterans without any dependents can expect a pay rise of $94 for a 100% disability rating. The VA disability compensation is determined via the following factors:
- Disability Rating: The authority issues a disability rating (10% to 100%) for claimants based on the severity of their sickness, injury, or disability to ensure recipients get enough compensation. The rating also determines if you qualify to receive the benefit.
- Dependents: Veterans with dependents, such as parents, spouses, and children determine their pay based on their disability rating.
- Special circumstances: The authority pays extra for special circumstances, such as dependent children of more than one, severe injuries, or the spouse suffering from a disability.
So, the payout can be different for each recipient based on their dependent, disability rating, or additional circumstances.
Who will receive the Veteran Affairs Disability Benefit?
Veterans can check their eligibility to receive the disability benefits for 2025 from the Department of Veteran Affairs below:
- People who have served in military services and have service-connected injuries or medical conditions that may have severe consequences, such as long-term disability, chronic sickness, etc that affect your body or mind.
- The condition includes chronic back pain, scar tissue, ulcers, cancer breathing problems, hearing loss, depression, PTSD, TBI, anxiety, conditions related to military sexual trauma, etc.
- You have a presumptive condition that does not require evidence to prove it was caused due to military service, such as a chronic disease that was diagnosed within 1 year of your discharge, illness after you were a POW (Prisoner of War), or disease or illness when you get in contact with contaminants and hazardous chemicals during your service.
- When you fulfill any of the below conditions:
- Your current condition is linked to an injury or illness you got during service or you got sick or injured during your military service.
- Your illness or medical condition is related to your active duty and appears now that you are retired from the service.
- You already had some medical condition before joining forces, but it got worse due to military service.
Is Veteran Affairs Disability payout taxable?
The IRS does not consider the VA disability payout income to report in the federal tax return as it is paid to the veterans who are suffering from serious injury, disability, or illness that is somehow linked to their military services (post, pre-, and in-service claims).
So, Veterans, or their families who receive the monthly monetary benefits from the VBA do not need to include the disability payout in their 1040 tax form. Under the Veteran Affairs, the tax-free payments are disability and pension benefits.
How to manage your VA benefits?
The Veterans or their families can manage their disability benefits to ensure they report or make changes in the benefits when any of the following changes increase:
- When the dependent child is older, remember to remove him from the benefit. When you have a new addition to the family, remember to add him to the dependent list to receive appropriate payment.
- When your disability or illness has amplified it may increase your disability rating or you can qualify for multiple disability ratings, remember to make the disability claims with evidence to improve your rating and receive the payout accordingly.
- If you wish to receive the VA payout early, select Direct Deposit as the payment method.
- If your direct deposit or payment method information changes, like address, or bank account information, remember to update them to the authority.
- Always review your disability claim and its status to stay updated on your payment and disability rating.
The Veteran Affairs offers tax-free disability benefits to the veterans or their families and ensures they lead a quality life after their services that may have been linked to their current illness or disability.