Jim,
Recent comment by a poster on VA Watch Dog Today: Sun, 2010-12-12, 'I’m a Veterans Service Officer and have a question for you. Is V.A. Disability Compensation for a service connected injury countable as unearned income? This money is usually uncountable because it is un-taxable. Now V.A. Pension is a taxable income and is normally countable, but that is a welfare pension for Military service members"
This is a misleading statement. According to IRS pub 525 page 15 - Do not include in your income ANY veterans benefit paid under any law, regulations or administrative practice by the VA.
Reply:
Thanks for letting me know. You are correct. I've taken that down and I've emailed that reader to let him know of his error. The IRS rule is here www.irs.gov/pub/irs-pdf/p525.pdf
I appreciate your eagle-eye and that you would take the time to point that out to me.