ATLANTA — As the tax deadline approaches, Georgia Commissioner of Veterans Affairs Pete Wheeler wants to remind all veterans and their dependents that benefits paid under any law administered by the U.S. Department of Veterans are tax exempt.
VA benefits that are tax exempt include disability compensation and pension payments paid either to veterans or their families; education, training and subsistence allowances; grants for homes designed for wheelchair living; grants for motor vehicles for veterans who lost their sight or the use of their limbs; GI insurance dividends paid to either veterans or their beneficiaries; and interest on dividends left on deposit with the VA.
Commissioner Wheeler points out that interest accumulated on money from VA benefits deposited into any type of interest-bearing account may be taxable. He encourages veterans with questions relating to these tax issues or any other tax matter to consult with a tax advisor. Taxpayers can receive tax assistance by contacting the IRS weekdays at 1-800-829-1040 from 7:30 a.m.-5:30 p.m. or at www.irs.gov.
IRS Publication 525, Taxable and nontaxable income” has a section devoted to veteran’s income. To order the publication call 1-800-829-3676.