Can I lose my VA benefits if I make too much money?

Asked by: Dr. Theron McKenzie MD  |  Last update: October 17, 2025
Score: 4.4/5 (43 votes)

Those with incomes between $125,000 and $170,000 would receive reduced benefits based on a scale and those who made $170,000 a year or more would receive no benefits.

Can I get VA benefits if I make too much money?

No, like the VA advertises, once you're in, you're in. No income restrictions after the fact.

Is there an income limit for VA benefits?

In 2021, the VA National Income Thresholds were as follows: $34,616 or less if you have no dependents. $41,539 or less if you have one dependent.

What can cause me to lose my VA benefits?

VA benefits may be reduced if there is sustained improvement of a disability, failure to attend routine future exams, failure to return dependency questionnaires (sent every 8 years), and/or failure to return yearly verification of unemployability for those rated for Individual Unemployability (IU).

What disqualifies you from receiving VA benefits?

Generally, to receive VA benefits and services, the Veteran's character of discharge or service must be under other than dishonorable conditions (e.g., honorable, under honorable conditions, general).

VA Reduction in Pay? Do you make TOO MUCH MONEY?

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Does the VA check your income?

As an enhanced benefit, VA will obtain Veterans' most recent financial information through computer matching agreements obtained from the IRS and SSA to verify Veterans' household income. Veterans will only be contacted if clarification is needed regarding the financial information.

Why would a Veteran be denied VA benefits?

VA Needs Evidence to Approve Your Claim

If you're a veteran with a disability, you may wonder why your benefits claim was denied. The answer is simple: the VA needs evidence to approve your claim. To verify that you are eligible for these benefits, you must submit medical records and other supporting documents.

What can stop your VA benefits?

Under 38 C.F.R. 3.957 in the VA code of regulations, the VA cannot sever your benefits for service connected disability if it's been in effect for 10 or more years. The only exceptions would be if you obtained VA disability benefits fraudulently, were dishonorably discharged, or didn't complete requisite service.

Can you lose your VA disability benefits if you work?

You can lose your TDIU benefits if the VA discovers that you are maintaining substantially gainful employment. It is important to note that no two situations are the same, and moreover, the VA's rules often feature exceptions and caveats that apply to unique situations.

What is the VA 10 year rule?

The ten-year rule says that the VA cannot revoke a veteran's disability rating if they have had it for a decade or more. That means that the VA has to offer the vet some level of benefits, although there are limited exceptions. Also, the ten-year rule is a moot point for a subset of veterans' disability claims.

Who is not eligible for VA benefits?

If you're a current or former member of the Reserves or National Guard. You must have been called to active duty by a federal order and completed the full period for which you were called or ordered to active duty. If you had or have active-duty status for training purposes only, you don't qualify for VA health care.

Can you earn money while on VA disability?

If your 100% VA Disability Rating comes because you qualify for the 100% rating specified for a single (or combination of multiple) service-connected conditions using the Schedule of Ratings, then you have NO limitations on your ability to work.

What are the new VA rules for 2024?

Under the PACT Act, all toxic exposed Veterans were supposed to become eligible for VA care – in increments – between now and 2032. VA eliminated the phased-in approach – meaning that three new cohorts of Veterans are now eligible to enroll in VA health care as of March 5, 2024.

Does working affect VA benefits?

There are no restrictions on how much they can earn without affecting their VA disability benefits. Benefits Unaffected – Veterans with a 100% permanent and total disability rating will continue to receive their full VA regardless of their earnings from employment.

How much money can I make and still get VA disability?

Beginning in January 2024, veterans whose income was $170,000 or higher in 2023 would no longer receive disability compensation, and those whose household incomes were between $125,000 and $170,000 would receive adjusted payments.

Can you pass down VA benefits?

As the spouse or dependent child of a Veteran or service member, you may qualify for certain benefits, including health care, life insurance, or money for school. As the survivor of a Veteran or service member, you may qualify for added benefits, including help with burial costs and survivor compensation.

Can you work full time and collect VA disability?

In VA disability, a Veteran can be paid at 100% and still work full time. While some individuals receiving, social security can still work, it's only for very short periods of time for a set amount of money. On VA disability, however, you can make as much money as you'd like and still receive benefits.

What is the 70-40 rule for VA disability?

If a veteran has two or more service-connected disabilities, at least one of those disabilities must be rated at 40% or higher. When these ratings are considered for the other disabilities, the veteran's combined disability rating must be 70% or higher. This is essentially how the 70-40 rule operates.

Can VA benefits be terminated?

Only in cases where fraud can be proven or a serious mistake was made can your benefits be considered for termination. If you have not been receiving VA disability for ten or more years and VA determines that your injury or illness is not service-connected, your benefits may be threatened.

What causes loss of VA benefits?

One of the primary reasons veterans lose their VA benefits is the failure to meet the eligibility criteria. If a veteran's circumstances change, such as a significant increase in income or a change in disability rating, they may no longer meet the requirements for certain benefits.

Will I ever lose my VA benefits?

Even if you haven't been getting payments for ten years, it's quite rare to lose benefits completely. Veterans can have their compensation reduced or their pension terminated if they're incarcerated, but the VA will reinstate or resume payments upon release.

What disqualifies you from VA disability?

A Veteran who has met the active service requirement still won't be eligible for benefits if he or she has received a dishonorable discharge. However, Veterans with other types of discharges, including honorable discharges, discharges under honorable conditions, and general discharges will still qualify.

Can you be denied VA benefits because of your income?

Some Veterans are eligible for VA health care no matter their income. You may be eligible based on your VA disability rating, service history, or other factors. If you think you may be eligible, we encourage you to apply anytime. Review health care eligibility factors.

Can the VA cut my benefits?

If you had a service-connected disability rating of at least 20%, the VA can lower your benefits to 10%. On the other hand, if your rating is 10%, the amount will be reduced by one-half. These are the current percentages as allowed by law, and they could change in the future.

Is the VA disability going away in 2024?

Under that phaseout, veterans whose gross household income was $170,000 or higher in calendar year 2023 and who would have received the average annual payment would no longer receive any disability compensation from VA in calendar year 2024.