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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.
You have two options to amend your Virginia tax return: Download and fill out Form 760 yourself. When you're done, print out the form and mail it to one of these addresses: Virginia Department of Taxation, P.O.Box 760, Richmond, Virginia 23218-0760 or Virginia Department of Taxation, P.O.Box 1498, Richmond, Virginia 23218-1498 OR File your Virginia state tax amendment with the help of an efile TaxPro!ou have two options to amend your Virginia tax return: Download and fill out Form 760 yourself. When you're done, print out the form and mail it to one of these addresses: Virginia Department of Taxation, P.O.