VA Pension Award Notice — What It Means & What to Do

How VA pension works: You get a monthly amount. But the amount is REDUCED dollar-for-dollar by income you earn.

Example: Your VA pension rate is $1,500/month and the income limit is $1,800/month. If you earn $300/month, your pension is reduced by $300, so you get $1,200/month. If you earn $1,800/month, your pension drops to $0.

What counts as income?

• Wages from employment
• Self-employment income
• Social Security benefits
• Rental income
• Interest, dividends, capital gains
• Pensions (including retirement pensions from prior jobs)
• Alimony received

What does NOT count as income?

• Food and shelter you receive for free
• Gifts from family
• Inheritance
• Refunds of taxes you paid
• Loans (only the interest counts)
• Medical expenses you paid

You MUST report income changes within 30 days. This is required by law. Failure to report can result in overpayment that you'll owe back.

Report these changes:

• You get a job or change jobs
• You receive a raise or change in pay
• You start or stop receiving Social Security
• You receive a pension or change in pension
• You receive inheritance or lump sum
• You marry or divorce (dependent status changes)
• A dependent moves in or moves out

How to report: Call VA at 1-800-827-1000 or contact your local VA office. Ask to speak to a pension representative. Provide your claim number and the new information.

Pro Tip: Report GOOD changes too. If income decreases, your pension may INCREASE. Don't miss out by not reporting.

If you need help with daily activities, you may get A&A:

• Help bathing, dressing, eating
• Can't manage your money
• Have vision problems (blind or nearly blind)
• Are housebound (can't leave without assistance)

A&A amount: If approved, A&A can add $500-$1,500+/month to your pension depending on your situation.

How to apply: Contact VA and ask to apply for Aid & Attendance with your pension. You'll need medical documentation showing your functional limitations. A&A is underused — many eligible people don't know it exists.

VA pension approval can help you qualify for:

• Medicaid: Many states extend Medicaid to elderly/disabled with low income. VA pension counts as income, but income limits may still allow you to qualify. Check your state.
• SNAP (Food Stamps): Your VA pension is income for SNAP. With pension income, you may still qualify for SNAP depending on your state's rules.
• Low Income Home Energy Assistance Program (LIHEAP): Helps pay heating/cooling bills. VA pension income may qualify you.
• Property Tax Exemptions: Many states offer property tax breaks for veterans. VA pension may help you qualify.
• Senior Services: Many programs use income to determine eligibility. Your VA pension letter can help.

ACTION: Keep your VA pension approval letter handy. When you apply for state/federal benefits, include it with your application to show your income.

YES — VA pension COUNTS as income for:

• SNAP (Food Stamps) — reduces benefits based on income
• Medicaid — counts toward income limit
• LIHEAP (utility assistance) — counts toward income
• Federal housing assistance (Section 8) — counts toward income
• Student financial aid — counts as parent/student asset/income

NO — VA pension does NOT count as income for:

• SSI (Supplemental Security Income) — doesn't count, BUT you're likely ineligible anyway due to asset limits
• Property tax exemptions (in most states) — veteran benefits often excluded
• Some state senior programs — varies by state

Always ask: When applying for any benefit, specifically ask: "Does VA pension count as income?" Rules vary by program and state.

Effective Date: This is when your pension officially starts. The letter will show this date.

Back Pay: If the effective date is before today, you're owed back payments. The VA should have included back pay with this approval letter or it will arrive separately.

Check for back pay:

• Look at the approval letter — does it mention back pay amount?
• Check your bank account for lump sum deposit (usually within 30 days of approval letter)
• If you expected back pay but didn't receive it, call VA at 1-800-827-1000 to ask about it

Pro Tip: Don't spend back pay immediately if you can help it. Set it aside. The VA occasionally audits accounts and may find overpayments you'll need to repay.

DO:

• Report income changes within 30 days
• Update your address if you move
• Keep the VA informed of marital status changes (marriage, divorce)
• Report changes in dependents
• Keep your approval letter safe — you'll need it for other benefits

DON'T:

• Wait to report income changes — report promptly
• Assume the VA will know about your changes automatically
• Work "under the table" to hide income — it will be discovered and you'll owe back money
• Share your VA benefits with non-dependents without telling VA (this affects your claim)