A report released August 7 by the Congressional Budget Office presented the option of taxing veterans disability compensation to help counter the effect on the federal budget. Congress has not acted on this report, and no legislation is pending with regard to treating veterans disability compensation as income.
To help veterans and their families better understand how much less they would receive in compensation if the government taxed payments, our calculator looks at several factors to compute an approximate “before” and “after” look at your total net income.
2014 Tax Brackets (for taxes due April 15, 2015), Internal Revenue Service
Veterans Compensation Benefits Rates Tables (effective December 1, 2014), Department of Veterans Affairs