Question:
My husband draws compensation from the VA and we live in a private housing subsided by HUD. The landlord says his disability is counted as income. The VA office said it’s not. Who is right? We need to know.
Jim's Reply:
Department of Veterans Affairs compensation payments are always counted as income. I can't think of any program or plan that doesn't see that money for what it is...real money. VA benefit money is used in home loan decisions, child support and alimony cases and in credit card applications and every other financial support ruling that I'm aware of.
VA compensation is tax exempt and many veterans confuse that with how agencies like HUD, Social Security and other aid agencies count it as income. It is tax exempt income, but income nonetheless.
I'm sure the "VA office" said that the money was tax exempt because they wouldn't know about or have any authority to speak to how HUD viewed the money...it's a HUD rule, not a VA rule and VA can't comment.
If you're interested in the details, scroll down to Subpart B - Disclosure and Verification of Social Security Numbers and Employer Identification Numbers; Procedures for Obtaining Income Information on this page and you can explore some of the federal regulations that support the reporting of all income.