Tax Deductions for Disabled Veterans

by Danielle Langberg ; Updated July 27, 2017
Disabled veterans may qualify for numerous tax credits and deductions.

The United States thanks its disabled veterans for their sacrifice and service to the nation by extending a variety of tax credits and deductions – some are offered on the federal level, other benefits vary from state to state.

Property Taxes

Many states that levy annual property taxes on residential and investment properties offer tax abatements to disabled veterans who served in the armed forces.

Compensated Work Therapy

The Internal Revenue Service ruled in 2007 that money paid to disabled veterans through the Compensated Work Therapy Program run by the Dept. of Veterans Affairs does not constitute taxable income.

Surviving Spouse Exemptions

Surviving spouses of disabled veterans who remain unmarried are eligible for property tax exemptions on the veteran's place of residence and any property that the veteran owned prior to passing away.

Claim Forms

The Veterans Administration provides tax claim forms and instructions to disabled veterans seeking to take advantage of tax deductions.

California Taxes

Disabled veterans residing in the State of California or owning property in that state are not eligible for property tax exemptions.

About the Author

Danielle Langberg has worked as a technical/freelance writer since 2008. As a technical writer she developed internal documents as well as promotions and advertising materials. Langberg has a Master of Arts in English literature, composition and technical writing from LaTech University.

Photo Credits

  • Image by Flickr.com, courtesy of Randy