A First Look At 2018 Veterans Disability Rates

If you’re receiving VA disability payments, you’re getting a raise. Check out the new veterans disability rates below.

Veterans who rely on disability benefit payments saw only a small increase of .03 percent in 2017, and there were no increases in 2016. But in 2018, veterans will see full 2% increase (called cost-of-living adjustment, or COLA) in their monthly disbursements.

A First Look At 2018 Veterans Disability Rates

House Bill 1329, titled the Veterans’ Compensation Cost-of-Living Adjustment Act of 2017 authorized this increase. The president signed it into law on November 2nd, 2017.

This is the largest increase in VA disability benefit payments since 2012.  The new, increased rate became effective on December 1, 2017, and will appear in payments issued beginning on December 31, 2017.

If you are a retiring veteran this year, you’ll also see a temporary COLA increase from the increase in active duty military pay given in January.

COLA Calculations

Cost of living adjustments are computed by examining the Consumer Price Index (CPI-W) from the US Bureau of Labor Statistics. Using the CPI-W from the third quarter of both the current year and the previous year (July, August and September), the COLA is based on the increase percentage from the 2016 third quarter to the third quarter in 2017.

This year’s weather disasters in the southern US may have contributed to the assigned increase as well, due to higher gas and other consumer prices  as well as other inflation-related items.

How Much?

If you’re at 10% disability and have no dependents, you’ll receive an additional $136.24 per month, or $1,634.88 for the year.

If you’re at 20% disability without dependents you’ll see an increase of $269.30 per month, or $3,231.60 for the year.

These ratings have no other adjustments for spouses, parents or children. However, things get a bit more complicated with higher ratings.

If your rating is between 30% and 60%, and you’re alone, you’ll receive $417.15 for 30% to $1083.52 for 60%. The rates increase with a spouse, a parent, spouse and parent (one or two), and an additional stipend for a spouse who needs “aid and assistance” (listed as a/a) as well as veterans with children.

For veterans rated 70% to 100% disabled with no dependents, the increased amounts start at $1365.48 for 70% disabled to $2937.96 for 100% disabled. With a spouse, dependent parents and/or children, there are also upward adjustments for each.

Your ratings consist of a single number for any and all conditions that rate you as “disabled.” You can review the complete breakdown of increase amounts here.

As A Reminder

VA disability payments are not listed as “gross income” on tax returns, since it is non-taxable.

Need Help?

If you’re applying to the VA for disability benefits, but can’t seem to get anywhere, call The Herren Law Firm. We’ve helped over 4,000 Houstonians navigate the VA’s complicated application and appeals process to get the benefits they deserve. Call us today at 713-682-8194 to schedule your free consultation. There’s no obligation, and we’ll take your case on a contingency fee basis, with no up-front charges.