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VA Benefits: Disability Compensation

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Disability compensation is a monetary benefit paid to Veterans who are disabled by an injury or illness that was incurred or aggravated during active military service. These disabilities are considered to be service connected.

For additional details on types of disability claims and how to apply, go to

Monthly disability compensation varies with the degree of disability and the number of eligible dependents. Veterans with certain severe disabilities may be eligible for additional special monthly compensation (SMC). Disability compensation benefits are not subject to federal or state income tax.

The payment of military retirement pay, disability severance pay and separation incentive payments, known as Special Separation Benefit (SSB) and Voluntary Separation Incentive (VSI), may affect the amount of VA compensation paid to disabled Veterans.

To be eligible for compensation, the Veteran must have been separated or discharged under conditions other than dishonorable.

Receiving Disability Benefit Payments

The Department of Treasury has mandated that all recurring federal benefits be administered through either Electronic Funds Transfer (EFT) or Direct Express® Debit MasterCard®. Compensation and pension beneficiaries can establish direct deposit through the Treasury's Go Direct helpline. Call toll-free 1-800-333-1795, or enroll online at  You can also sign up by contacting the U.S. Treasury Electronic Payment Solution Center at (800) 333-1795. 

See our Disability Compensation Rates page for more information.

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