Is the aid & attendance pension taxable?


My Mom was awarded an aid & attendance pension last year.  I was wondering if she will receive a tax form reporting how much money she received in 2009 and if it will have to be reported on her income tax form and if it is taxable income.

A&A is not taxable.

Where can I find documentation for "non-taxable? Thank you.


VA disability benefits.   Do not include disability benefits you receive from the Department of Veterans Affairs (VA) in your gross income. If you are a military retiree and do not receive your disability benefits from the VA, see Publication 525 for more information.

  Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the VA. These include:
Education, training, and subsistence allowances,

Disability compensation and pension payments for disabilities paid either to veterans or their families,
Grants for homes designed for wheelchair living,

Grants for motor vehicles for veterans who lost their sight or the use of their limbs,

Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death,

Interest on insurance dividends left on deposit with the VA,

Benefits under a dependent-care assistance program, or

The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001.

Thanks for making this posting and sharing the regs on it.


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