Disability compensation is a tax-free monetary benefit paid to Veterans with disabilities that are the result of a disease or injury incurred or aggravated during active military service. Compensation may also be paid for post-service disabilities that are considered related or secondary to disabilities occurring in service and for disabilities presumed to be related to circumstances of military service, even though they may arise after service. Generally, the degrees of disability specified are also designed to compensate for considerable loss of working time from exacerbations or illnesses. 

Compensation benefits require that your disability be service connected. You must also have separated or been discharged from service under honorable conditions. Your disability must be the result of an injury or disease that was incurred or aggravated while on active duty or active duty training. 

A service-connected disability is a disability related to an injury or disease that developed during or was aggravated while on active duty or active duty training. 

You may be eligible for disability compensation if you have a service-connected disability that started while on active duty and is now a chronic medical condition. 

• Your DD 214 or other separation documents 
• Your service treatment records 
• Any medical evidence related to your illness or injury (such as Medical Providers reports, X-Rays, and medical test results) 

A nexus letter is a medical document written in a legal format by a licensed medical provider linking the Veteran’s current medical disability with their active-duty service, aggravation of a pre-existing condition, or as a secondary condition.

Disability Benefits Questionnaires (DBQs) are forms that guide providers during an exam to ensure that all the information needed to correctly rate a disabled veteran’s conditions is properly recorded. There are more than 60 different DBQs. The VA released new Public Disability Benefits Questionnaires (DBQs) in March 2021.  

This is an additional tax-free benefit that can be paid to Veterans, their spouses, surviving spouses and parents. For Veterans, Special Monthly Compensation is a higher rate of compensation paid due to special circumstances such as the need of aid and attendance by another person or a specific disability, such as loss of use of one hand or leg. For spouses and surviving spouses, this benefit is commonly referred to as aid and attendance and is paid based on the need of aid and attendance by another person.