New GI Bill Info from Armytimes.

Just more than a year from now, on Aug. 1, 2009, veterans' education benefits will undergo a life-changing transformation that will make a four-year college degree suddenly affordable for a new generation of wartime veterans.

Rick Maze of Armytimes.com just wrote about when benefits start, who will qualify and how much you may get: http://www.armytimes.com/news/2008/07/military_gibillexplained_072008w/

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Recouping Taxes Paid on Disability Severance Pay

A veteran posting as "Dorothy" wrote on the "Non-governmental U.S. Veteran Information" website:

"Many medically discharged vets, including some good friends of mine, don't know they are entitled to get the taxes back if they get a VA rating. The ones who do know they are entitled (like I did) don't know how to go about doing it. If I can spare anyone what I went through trying to figure it out, its worth it."

See for yourself at: IRS publications 17 (Your Federal Income Tax) at page 52, and & IRS publications 525 (Taxable & Non-taxable Income) at page 17 both say that those who receive a lump-sum disability severance payment and are later awarded VA disability benefits can exclude 100% of the severance benefit from income. Unfortunately, neither publication says how and, as an added complication, it can happen that VA disability ratings are awarded after taxes on the lump-sum are already paid.

To help sort it all out, the Presidio of Monterey Staff Judge Advocate put an information paper online. Its three pages of instructions are followed by 4 handy sample letters.

"Dorothy" worked through the process and posted a step-by-step procedure here: http://www.usvetinfo.com/meddischarge.htm

I, personally, have not worked through the process but it looks worth taking advantage of the prior experience of those who have. Read more on USVI: http://www.usvetinfo.com/meddischarge.htm

And thanks for the head's up from the blog Military & Veterans: Politics for the deserving

VA Benefits Related to Home Ownership

Veterans, their survivors and caretakers may not be aware of the full range of benefits related to home ownership that they have earned by their service.

• The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. See Home Loan Guaranty Service Frequently Asked Questions
• Veterans or servicemembers who have specific service-connected disabilities may be entitled to a grant from the Department of Veterans Affairs (VA) for the purpose of constructing an adapted home or modifying an existing home to meet their adaptive needs. See Specially Adapted Housing Program
• See much more at VA Loan Guaranty Web Site

Expedited Social Security Disaility for Wounded Warriors

From Social Security Online: Military service members can receive expedited processing of disability claims from Social Security. Benefits available through Social Security are different than those from the Department of Veterans Affairs and require a separate application.

The expedited process is used for military service members who become disabled while on active military service on or after October 1, 2001, regardless of where the disability occurs.

Learn More: http://www.socialsecurity.gov/woundedwarriors/

Veterans Benefits Tour

The House Committee on Veterans Affairs offers a web-based Tour of the benefits available to America's veterans and their survivors. It's a nice, non-technical summary that's a great backgrounder and reminder:
http://veterans.house.gov/benefits/legacy.shtml.

(The committee also hosts a variety of other resources, such as periodic webcasts of hearings, and heads-up on legislation. Check it out! http://veterans.house.gov/)

The Military Survivor Benefits Page

"The primary survivor benefit applicable to survivors of retirees (and, in some situations, active duty members) is the Uniformed Services Survivor Benefit Plan (SBP). The Reserves have a related plan called the Reserve Component Survivor Benefit Plan (RC-SBP). Dependency and Indemnity Compensation (DIC) is provided by the Department of Veterans Affairs under special circumstances."

Learn More: http://www.defenselink.mil/militarypay/survivor/