If you are a veteran and you owe taxes you cannot afford to pay, you may be eligible for IRS relief programs. Veterans also receive special consideration in certain other tax matters. The IRS defines a veteran as an individual who has served at least 24 consecutive months in active duty and has not received a dishonorable discharge. This includes full-time members of the Army, Navy, Marines, Air Force, and Coast Guard as well as commissioned officers of certain federal agencies. Spouses, children, and parents of deceased and disabled veterans also qualify.
Tax-Exempt Disability Benefits
Your taxable gross income does not include your VA disability benefits. This includes:
Pension and disability compensation payments, including those paid to your family.