Older adults are recipients of many different types of benefits, and the maximum income for VA benefits may be confusing. For example, what are the maximum income levels for VA benefits? How much money do you need to make to qualify for veteran’s benefits?
Any sort of commission or payments you receive that don’t have a specific exclusion will be counted towards your total income. Some forms of income include but are not limited to wages, alimony payments, unemployment compensation, worker’s compensation, pensions, and Social Security benefits.
We will clear up any questions about the amount of money a veteran can make before their benefits are reduced or eliminated. Additionally, we’ll explore some other programs and benefits available to seniors. Thank you for reading!
What is the VA Income Threshold for 2022?
| Veteran With: | VA National Income Threshold | VA Priority Group 8 Relaxation Threshold | VA Housebound Threshold | VA Aid and Attendance Threshold | VA Pension Threshold | Medical Expense Threshold |
| 0 Dependents | $39,849 | $43,834 | $19,598 | $26,752 | $16,037 | $738 |
| 1 Dependent | $47,818 | $52,600 | $24,562 | $31,714 | $21,001 | $966 |
| 2 Dependents | $50,561 | $55,617 | $27,305 | $34,457 | $23,744 | $1,103 |
| 3 Dependents | $53,304 | $58,634 | $30,048 | $37,200 | $26,487 | $1,240 |
| 4 Dependents | $56,047 | $61,652 | $32,791 | $39,943 | $29,230 | $1,377 |
| For each additional dependent add | $2,743 | $2,743 | $2,743 | $2,743 | $2,743 | 5% of maximum allowable pension rate from the previous year |
Child Earned Income Exclusion: $13,850
For some Veterans, the VA National Income Threshold (based on last year’s gross household income) and net worth determine if they qualify for Priority Group 5 assignment and cost-free VA health care. For example, the VA pension income thresholds help us to understand if someone is eligible for free medications and/or travel benefits. Conversely, suppose a Veteran’s household income is below the VA National Income Threshold. In that case, they may be eligible for cost-free VA health care. The VA National Income Threshold is adjusted annually and based on the prior year’s gross income.
Can You Make Too Much Money to Get VA Benefits?
Furthermore, some people may wrongly believe that their financial situation will affect whether they qualify for benefits. According to the VA, no income restrictions exist for receiving disability benefits. This indicates you can never earn too much money to qualify for VA benefits. Veterans with service-related health conditions can receive these benefits. Since one’s current income does not determine a service-related issue, it is irrelevant. The VA does not base its decisions on whether a veteran can afford benefits.
There are, however, income restrictions when it comes to accessing free VA healthcare. The VA National Income Threshold is the cutoff point for receiving copayment-free services. If your reported income is below this threshold, you will not have to make any copayments for VA healthcare services. The amount of the VA National Income Threshold changes every year. It is based on the Department of Health and Human Services (HHS) Poverty Guidelines.
So, if your income is higher than the VA National Income Threshold, don’t worry–you can still qualify for VA benefits. You may have to pay some copayments under Priority Group 7 or 8. VA healthcare becomes accessible to you at a lower cost once you reach Priority Group 7. You would be responsible for the entirety of your copayments at Priority Group 8—beneficiaries who earn less than the qualifying income amount receive free medications and travel benefits.
You can find out more about VA benefits and income restrictions by contacting the VA directly or speaking with a VA-accredited representative.
How Much Money Can You Have and Still Get VA Benefits?
From December 1, 2021, to November 30, 2022, the net worth limit required to be eligible for Veterans Pension benefits is $138,489. In addition, effective October 18, 2018, VA updated its net worth calculation to create a more straightforward pension entitlement process.
Net worth includes your assets and your spouse’s assets, and annual income. To apply for Veterans Pension benefits, you must account for all your assets and income. This includes money in the bank, real estate you own, stocks and bonds, as well as any other property or possessions of value. Your net worth can’t exceed the VA’s limit to qualify for benefits.
The VA National Income Thresholds are updated annually, effective from December 1 to November 30. If you’re a married Veteran, your spouse’s income will also be taken into account when determining your eligibility for VA benefits.
What Disqualifies You from VA Benefits?
A few things can disqualify you from VA benefits, including criminal activity. You may be ineligible for healthcare and other VA services if you have a felony conviction. Some VA benefits may be ineligible if you are not a U.S. citizen. Additionally, if you are dishonorably discharged from the military, you will not be eligible for VA benefits. VA benefits are reserved for those who have served their country honorably.
Can I Lose My VA Health Benefits?
In the future, those in lower priority groups for VA health care benefits could lose coverage. You will no longer have health coverage if you cancel your private insurance. You may be given the option of enrolling in a VA health care plan. You will have to wait until the next open enrollment period if you do not enroll. You may also be dropped from VA health care if you move out of the coverage area or if you no longer meet the eligibility criteria. VA typically will not cover expenses for Veterans’ family members. Thus, if you cancel your private insurance plan, your loved ones may be left without health coverage.
If you cancel your Medicare Part B coverage, you won’t be able to acquire the same level of coverage until the start of the next year. If you want your old coverage back, you might have to pay a fee (known as reinstating your coverage). Also, suppose you drop your VA health care benefits and later decide you want them back. In that case, you’ll have to reapply and go through the eligibility determination process again.
Does Veterans Disability Count as Income?
The gross income you receive should not include any disability benefits given to you by the VA. If you receive disability compensation from another source, such as Social Security, that income may be considered. Veterans’ benefits are not taxable income.
The following payments are classified as disability benefits:
- Disability compensation and pension payments are available to Veterans or their families who have a disability.
- Grants for houses designed to be wheelchair accessible.
- The government offers grant programs to VIA (Veterans with an Independence Allowance) for those who have lost their limbs or vision.
- The advantages of a dependent-care assistance program.