Are aid and attendance benefits exempt from income tax?

Asked by professor  |  May 11, 2011

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Carol Bradley Bursack, May 13, 2011

Over the span of two decades author, columnist and speaker Carol Bradley Bursack cared for a neighbor and six elderly family members. Because of this experience, Bradley Bursack created a portable support group, the book "Minding Our Elders: Caregivers Share Their Personal Stories."

 

Please check with a CPA about this, as there are different rules in different states, and each circumstance is slightly different. You should have expert financial advice before deciding this.
Good luck - I hope so.
Carol

 
 

Rosanne Roge, Dec 9, 2011

Rosanne Rogé joined R.W. Rogé & Company, Inc. in January 1995. She is a graduate of C.W. Post - Long Island University. Ms. Rogé is certified by The Certified Financial Planners Board of Standards to use the professional certifications CFP and Certified Financial Planner. She is also a Certified Senior Advisor (CSA).

 

The Aid and Attendance Benefit for our Veterans are received tax-free to the recipient. Veterans are elgibile if they served in WWI, WWII, Korea and Vietnam. For those wartime veterans who entered active duty starting September 8, 1980, the eligibilty requirements are a bit stricter. The Veteran must have served at least 24 months or the full period for which called or ordered to active duty. those in service from August 2, 1990 to present are also eligible for this benefit.

Those hoping to qualify can seek out free help through a regional, state or county-level Veterans office or go to www.va.gov. Then click on locations and then click on State Veterans Affairs orrifces or Regional Benefit Offices. You can also email the Department of Veterans Affairs at www.iris.va.gov or call them at
1-877-294-6380.

 
 

Ralph Robbins, Feb 8, 2012

Ralph S. Robbins, CFP© is a fully licensed Certified Financial Planning Practitioner specializing in Eldercare Financial Planning. He works everyday helping families in crisis find creative ways to fund long-term care expenses and deal with family financial issues.

 

All VA non-service connected pensions (Basic, Homebound, and Aid and Attendance) are deemed as income for federal and state income tax purposes.

 
 

Cologirl42

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May 13, 2011

Aid and Attendance are income based. If you have enough income to pay taxes you probably will not qualify for Aid and Attendance.

 
 

krnhersh

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Feb 8, 2012

if i paid for my dads private nurses and aides-
it was out of a account with both my dad and my name on the account-
should this be included on his tax papers? or mine?

 
 

vethelp

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Feb 8, 2012

The VA's Aid and Attendance Pension is "tax-free" income and is not included in returns. This is national and not state dependent.

 
 

N1K2R3

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Feb 8, 2012

We have two conflicting opnions about Aid and Attendance benfits for VA recipients.
Have you received, or has the recipient received a 1099 on this benefit?

 
 

N1K2R3

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Feb 8, 2012

Ralph, you "misspoke" and I misspelled. Sorry.

No 1099, no reporting.

 
 

vethelp

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Feb 8, 2012

The VA is not going to send out anything regarding this income as it is not taxable income.

 
 

JanInTexas

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Feb 8, 2012

Yes as long as you do not have to fill out a return............otherwise I do not know.

 

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