Understanding VA Disability Ratings and Claims
VA disability benefits are designed to compensate veterans who have incurred injuries or illnesses related to their military service. The VA assigns a disability rating—from 0% to 100%—based on the severity of the condition, with higher ratings leading to greater monthly compensation and access to more benefits.
Types of VA Disability Claims
- Original Claim: First claim filed for a disability connected to military service.
- Increased Claim: Request for a higher disability rating if a service-connected condition worsens.
- Secondary Service Connection: Claim for a new disability caused or aggravated by a service-connected condition.
- Reopened Claim: If a claim is denied and new, relevant evidence is found, it can be reopened.
- Dependency and Indemnity Compensation (DIC): For survivors of veterans who died from service-connected conditions.
- Special Monthly Compensation (SMC): Additional compensation for veterans with severe disabilities (e.g., loss of limb, need for aid and attendance).
VA Disability Ratings: How They Impact Benefits
- 0%-20%: Lower ratings generally offer monthly compensation but limited additional benefits.
- 30%-60%: Access to dependents compensation, additional VA health care eligibility, and possible property tax relief (state-dependent).
- 70%-100%: Priority health care, maximum monthly compensation, possible eligibility for Total Disability Individual Unemployability (TDIU), and comprehensive ancillary benefits.
Key Benefits by Rating:
- 30% and above: Eligible for dependent benefits.
- 50% and above: No co-payments for VA healthcare.
- 70% and above: Eligible for VA Caregiver Program, increased likelihood for TDIU.
- 100%: Full property tax exemption (in many states), CHAMPVA for dependents, commissary and PX privileges, and enhanced vocational benefits.
Business Owner Benefits for Disabled Veterans
1.
- Service-Disabled Veteran-Owned Small Business (SDVOSB): Enables access to federal contracting set-asides.
- Veteran-Owned Small Business (VOSB): Similar, but does not require a service-connected disability.
2.
- Vets First Verification Program (VA): Required for VA federal contracts.
- SBA SDVOSB Certification: Required for non-VA federal contracts (as of 2024).
- State-Level Certifications: Many states offer their own certification and procurement programs for veteran businesses.
3.
- Work Opportunity Tax Credit (WOTC): Tax credit for hiring veterans, including disabled veterans.
- Property Tax Exemptions: Many states provide partial or full exemptions for 100% disabled veterans.
- Business License Fee Waivers: Available in select states.
4.
- Veteran Business Outreach Centers (VBOCs): Offer counseling, training, and some funding guidance.
- SBA Loans: Patriot Express and other SBA loan programs prioritize veterans.
- State Grants: Vary widely; check your state's Department of Veterans Affairs.
5.
- Boots to Business: Entrepreneurship training through the SBA.
- VetCert Portal: Centralized platform for VA and SBA business certifications.
- Veteran Institute for Procurement (VIP): Training for government contracting.
State-Specific VA Benefits for Disabled Veterans
Examples of State Benefits:
New York:
- Property Tax Exemption: Up to 100% exemption for 100% disabled veterans.
- Tuition Waivers: Scholarships for dependents.
- State Contracting: Set-asides for SDVOBs.
Texas:
- Full Property Tax Exemption for 100% VA-rated disabled veterans.
- Veterans Land Board Loans for land/home purchases at favorable rates.
Florida:
- No state income tax
- Homestead Property Tax Discount
- State employment preference
California:
- Property tax exemptions
- Business license, tax, and fee waivers for veteran-owned businesses
Check your state’s Department of Veterans Affairs for a complete list.
Key Ancillary VA Benefits to Know
Health Care
- Priority Group 1 for 50%+ ratings (no copays).
- Dental and vision care for 100% ratings.
- VA Caregiver Program for severely disabled (70%+).
Housing and Financial
- VA Home Loan Guaranty: No down payment, no PMI, favorable terms.
- Specially Adapted Housing (SAH) Grant: Up to $117,000 for housing modifications for severe disabilities.
- Automobile Grant: Up to $24,000 for vehicle adaptations for qualifying disabilities.
Education and Employment
- Chapter 31 Vocational Rehabilitation & Employment (VR&E): Job training and employment support.
- Post-9/11 GI Bill: Education benefits transferable to dependents if certain conditions are met.
- Veterans’ Preference in Federal Hiring: Additional points for federal employment applications.
Family and Survivor Benefits
- CHAMPVA Health Coverage: For dependents if veteran is 100% P&T (Permanent & Total).
- Dependents Educational Assistance (DEA): Up to 36 months of education benefits.
- VA Life Insurance: Up to $400,000 for eligible veterans.
Other Benefits
- Commissary and PX Access: Now open to all 100% disabled veterans.
- National Parks and Recreation Passes: Free for disabled veterans.
- VA Burial Benefits: Headstones, burial in VA cemeteries, and allowances.
VA Claims Process: Step by Step
- Gather Medical Evidence: Service records, private medical records, statements from doctors.
- File VA Form 21-526EZ via VA.gov or with a VSO (Veteran Service Officer).
- Attend C&P Exam: Compensation and Pension exam scheduled by the VA.
- Await Decision: Check status online; typical wait is 4-6 months.
- Appeals Process: Use VA Form 21-0958 (Notice of Disagreement) if denied or under-rated.
- Request an Increase: Submit new evidence if your condition worsens.
Tip: Always work with an accredited VSO or VA-accredited attorney for the highest success rate.
FAQs for Disabled Veteran Business Owners
Can VA disability compensation be garnished or taxed?
- Federal and state income tax: NOT taxed.
- Garnishment: Only for specific debts (e.g., child support, alimony, or VA-related debts).
Can you work while receiving VA disability?
- Yes, unless you are receiving TDIU, which limits substantially gainful employment.
What is TDIU?
- Total Disability based on Individual Unemployability: Pays at 100% rate if your service-connected conditions prevent full-time work, even if you are rated below 100%.
How does disability rating affect business ownership?
- You can own and operate a business, except if on TDIU (rules are stricter—consult a VSO/VA lawyer).
Can I receive both military retirement and VA disability?
- Concurrent Receipt is possible for those rated 50% or more.
Common Pitfalls and Pro Tips
- Keep All Documentation: Every medical visit, business document, and correspondence with the VA matters.
- Know Your State’s Unique Benefits: Many valuable programs exist only at the state or local level.
- Renew Certifications Annually: SDVOSB/VOSB status must be kept current.
- Network with Other Veteran Business Owners: Join groups like the SDVOSB Network.
Get Help
- Veterans Service Organizations (VSOs): American Legion, DAV, VFW, state veteran offices.
- VA Accredited Attorneys: For appeals or complicated cases.
- Veteran Business Outreach Centers (VBOCs): For business and contracting help.
If you’re a disabled veteran and business owner, maximize your VA benefits and leverage every program available to you. Use this guide as your go-to reference, and share your experiences or questions below—your insights help fellow veterans thrive.
For more support and networking, connect with our community of disabled veteran entrepreneurs right here!