Service-connected disability compensation is a tax-free benefit paid to Veterans for a disability (or disabilities) that either:
- Arose during service
- Pension is a tax-free benefit paid to wartime Veterans with limited or no income who are either aged 65 or older or who are permanently and totally disabled due to a non-service- connected cause. Seriously disabled or housebound Veterans receiving Pension may also qualify for an additional Aid and Attendance or Housebound benefit.
- Was worsened or aggravated by service
- Is presumed by VA to be related to military service
To receive disability compensation, you must have been discharged under other than dishonorable conditions.