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VA disability compensation is nontaxable to the veteran or survivor and is not reported on any tax forms. The veteran will receive a report showing any adjustments due to cost-of-living adjustments (COLA) or other changes affecting the monthly benefit during the year.hus, for the 2012 tax year, the adjustment is $2,294 ($1,614 ($538 3) + $680 ($340 2)). (3) The adjustment is reported on the Other income line of Form 1040 as a negative number with the notation VA Disability Adjustment See Attachments included on the dotted line.
2015 va disability rates are 1 7 % higher than the previous year va disability rate increases are determined by cost of living adjustments colathe 2016 va disability rates will be known by the middle to end of october 2015 right after the september consumer price index is releasedligible veterans with disabilities can receive up to $ 3423 98 per month as a tax free monetary benefit veterans with disabilities can use the following va disability charts to determine how much financial assistance they are eligible for