Frequently Asked Questions
How does VA calculate combined disability ratings?
The VA uses the "whole person" method, not simple addition. Start at 100% efficiency. Apply your highest rating first — this reduces your remaining efficiency. Each subsequent rating is applied to the remaining efficiency. The result is rounded to the nearest 10%. For example: 60% + 40% = start at 100%, subtract 60% = 40% remaining. 40% of 40% = 16%. 60% + 16% = 76%, rounds to 80%.
Is VA disability pay taxable?
No. VA disability compensation is completely tax-free at the federal level. You do not report it as income on your federal tax return. Most states also exempt VA disability pay from state income taxes. This is one of the most significant financial benefits of a VA disability rating.
What is TDIU (Total Disability Individual Unemployability)?
TDIU allows veterans who cannot maintain substantially gainful employment due to service-connected disabilities to receive compensation at the 100% rate — even if their combined rating is less than 100%. You generally need a single disability rated at 60%+ or multiple disabilities totaling 70%+ with at least one at 40%. TDIU pays the same monthly amount as a 100% rating.
Can I get more compensation for dependents?
Yes! Veterans with a 30% or higher rating receive additional monthly compensation for a spouse, dependent children (under 18 or in school), and dependent parents. The amounts vary by rating. At 70%, a spouse adds $139.74/month. If your spouse requires Aid & Attendance care, an additional $168.06/month is added (for 30%+ veterans). Children and parents each add their own amounts per the rate table.