Benefit Reference, Educational Guide

Annual Clothing Allowance

If a service-connected prosthetic, orthotic, or topical medication wears out or stains your clothing on a regular basis, the VA pays you an annual tax-free clothing allowance under 38 USC 1162. The application is one short form, submitted once. Once approved, the allowance renews automatically every year unless your conditions change.

The August 1 deadline is the part most veterans miss. The benefit year runs August 1 to July 31, and your application must be filed within one year of the August 1 anniversary date. File before August 1 to claim the current year; a late application rolls to the next year's payment. Once approved, no reapplication is needed in future years unless your conditions or prescribed devices change.
The eligibility rule
Under 38 USC 1162 and 38 CFR 3.810, an annual clothing allowance is paid to a veteran whose service-connected disability uses or has used a prosthetic or orthopedic appliance (artificial limb, brace, wheelchair) that "tends to wear or tear the clothing," OR whose service-connected skin condition requires a topical medication that "causes irreparable damage to outer garments." For the 2026 benefit year each approved allowance is $1,053.19, a tax-free yearly lump sum. You can receive more than one allowance when separate sources damage different garment types. There is no fixed numeric cap, contrary to some online guides.
2026 amount: $1,053.19 per approved allowance. That is a 2.8% cost-of-living increase over the 2025 rate of $1,024.50. The figure rises each year with the same COLA used for disability compensation, and payments are typically issued between September 1 and October 31. Always confirm the current amount on VA.gov before relying on it.

Eligibility

You qualify if at least one of the following is true, and the damage is tied to a service-connected condition (or a condition compensated under 38 USC 1151 as if service-connected):

  • Path 1, prosthetic or orthopedic appliance: the VA has prescribed and you use a prosthesis (artificial limb), brace (back, knee, ankle, neck), wheelchair, walker with friction points, custom orthotic, or similar device that "tends to wear or tear" your clothing.
  • Path 2, prescribed skin medication: the VA has prescribed a topical medication (ointment, cream, gel) for a service-connected skin condition that causes irreparable damage to outer garments, typically permanent staining or chemical degradation of the fabric.

The damage must be linked to a service-connected condition. A non-service-connected skin condition or non-service-connected use of a brace does not qualify.

Path 1 has two routes, and the difference matters. Proven by a VA exam or hospital report, the regulation specifically requires loss or loss of use of a hand or foot compensable under 38 CFR 3.350(a), (b), (c), (d), or (f), which is narrower than most online summaries admit. Proven by certification from the Under Secretary for Health (or a designee), it covers any service-connected disability where a qualifying appliance tends to wear or tear clothing, with no hand or foot loss-of-use requirement. In everyday practice, a clear note from your VA clinician or prosthetist stating the device wears or tears your clothing is what carries the application through.
What "irreparable" means. Damage that cannot be removed by normal laundering or cleaning. Permanent staining from silver sulfadiazine for burns, betadine, or similar agents is typical. Damage that washes out is generally not "irreparable."

What clothing is covered

The clothing allowance is intended to compensate for damage to outer garments only. It does not cover all clothing items.

Covered: outer garments

  • Blouses
  • Pants and slacks
  • Shirts
  • Shorts
  • Skirts

Not covered

  • Hats and headwear
  • Scarves
  • Shoes and footwear
  • Socks
  • Underwear and undergarments

If a prosthesis or brace specifically damages footwear (for example, an ankle-foot orthosis that wears through socks), that damage is typically addressed through the VA's prosthetics service rather than the clothing allowance. The exact covered and not-covered lists are administrative guidance, so confirm borderline items like coats or jackets with your PSAS office.

Multiple allowances in the same year

You can receive more than one clothing allowance per year. There is no fixed "four allowance" cap in the regulation, contrary to some online guides. What 38 CFR 3.810(a)(2) and (a)(3) actually provide is:

  • One allowance per qualifying appliance or medication when each affects a distinct type of garment. For example, a prosthetic leg wears your pants and a prescribed skin cream ruins your shirts: that is two allowances.
  • Two allowances for a single garment type when two different appliances or medications act on the same kind of garment and together damage it at an increased rate compared with one alone.

The VA will not combine or convert these for you. Each qualifying source needs to be claimed on the application. In practice most veterans qualify for one or two.

How to apply

  1. Get the form. VA Form 10-8678 (Application for Annual Clothing Allowance). Download from VA.gov.
  2. Identify the service-connected condition and the device or medication. Use the diagnostic code and brief description (for example, "DC 7800 - facial burns, prescribed Silvadene 1% topical").
  3. Submit by August 1. Send it through My HealtheVet secure messaging, by mail or fax to the Claims Intake Center, or in person at your local PSAS office. Do not send it by ordinary email. Claims Intake Center: Department of Veterans Affairs, Claims Intake Center, PO Box 4444, Janesville, WI 53547-4444. Fax: 844-531-7818 (toll-free).
  4. PSAS reviews it. The Prosthetic & Sensory Aids Service (PSAS) at your local VA Medical Center adjudicates the claim and does review the medical evidence, commonly within a few business days for in-person or mailed applications. This does not re-open your rating.
  5. Payment. Approved allowances are issued annually as a lump sum, generally between September 1 and October 31.
The allowance does not touch your disability rating. Clothing-allowance applications go to the VHA prosthetics office (PSAS), not the VBA rating office. Filing does not trigger a re-examination and cannot put your rating at risk of reduction. A note on conflicting advice online: some former-rater videos describe a "rater" adjudicating this benefit. Under current VA procedure, PSAS prosthetics staff process these claims and review the medical evidence to make the call.

How to strengthen your claim

The person deciding your claim is a PSAS staffer, not your treating doctor. They cannot picture what your brace or skin cream does to fabric. Your job is to make the damage obvious in the record.

Skin-medication claims

These fail most often because "irreparable damage" is hard for a non-treating reviewer to visualize. The single most effective thing you can do is make the damage visible:

  • Keep the damaged garments. Lay several out and photograph them, showing the same staining or fabric breakdown in the same spots across multiple shirts or pants. Consistency across several items shows it is not a one-time accident.
  • State plainly that it does not wash out. Removable stains are excluded by rule, so address this head-on in your statement.
  • Get it into the medical record. Ask your VA or private clinician to write that the prescribed medication causes irreparable damage to your outer garments. That single sentence is often what satisfies the requirement.

Device claims (Path 1)

Photos are usually unnecessary if a clinician or prosthetist documents that the device tends to wear or tear your clothing. If you are denied, you can request a Higher-Level Review, point to the medical evidence, and cite the M21-1 evidence threshold that should have resulted in a grant.

Renewal, changes, and special situations

  • Automatic renewal. As of a December 2022 law change (PL 117-328, section 201), the VA makes recurring annual payments without a new application for veterans whose prescribed devices and medications have not changed.
  • Notify VA of changes. If a prosthesis is no longer used, a topical medication is discontinued, or a new device is prescribed, file an updated VA Form 10-8678 to either add a new allowance or terminate one that no longer applies.
  • Incarcerated veterans. Under 38 USC 5313A, if you are incarcerated more than 60 days for a felony and the institution furnishes clothing, the allowance is reduced by 1/365th for each day after the first 60.
  • Surviving spouses and dependents. The clothing allowance is veteran-specific and is not paid to surviving spouses or dependents.

Quick reference

Legal authority38 USC 1162; 38 CFR 3.810
2026 amount$1,053.19 per allowance (tax-free lump sum)
Application formVA Form 10-8678
Who decidesVHA Prosthetic & Sensory Aids Service (PSAS), not the rating office
Benefit yearAugust 1 to July 31
DeadlineWithin 1 year of the August 1 anniversary; file before August 1 for the current year
RenewalAutomatic since PL 117-328 (Dec 2022) if nothing changes
Multiple allowancesOne per distinct garment type damaged; up to two for one garment type damaged by two sources. No fixed numeric cap.
Affects your rating?No. The application does not re-open or reduce your rating.

Sources and authority

Frequently asked questions

I missed the August 1 deadline. Did I lose the allowance for the year?

For new applications, yes, generally. Applications received after the August 1 deadline are typically processed for the following year's payment cycle. If you have a documented good-cause reason for the late filing (hospitalization, deployment, mailed-but-delayed), include the explanation with the form. VA Prosthetics may accept it.

I am rated 0 percent for a skin condition but use a prescribed cream. Do I qualify?

Yes. The clothing allowance does not require a compensable rating, only that the condition be service-connected and the prescribed medication cause irreparable garment damage. A 0-percent service-connected skin condition is still service-connected for this purpose.

The brace I use is for a non-service-connected condition. Can I still get the allowance?

No. The qualifying device or medication must be prescribed for a service-connected condition. A brace for a non-service-connected back injury does not qualify, even if it damages clothing.

How much is the annual allowance?

For the 2026 benefit year, each approved allowance is $1,053.19, a tax-free yearly lump sum (a 2.8% increase over the 2025 rate of $1,024.50). The amount is adjusted each year by the same cost-of-living adjustment used for disability compensation, and the current figure is posted on VA.gov. The same amount is paid for each qualifying source you are approved for.

Is the clothing allowance taxable?

No. Like all VA disability-related payments, the clothing allowance is tax-free at the federal level. It is not reported on your federal tax return and the VA does not issue a W-2 or 1099 for it.

Do I need to reapply every year?

No. Once approved, the allowance renews automatically each year for the same qualifying device or medication. You only need to file a new VA Form 10-8678 if you add a new qualifying source, discontinue an existing one, or have not previously been approved.

Will applying for this allowance trigger a re-exam of my service-connected condition?

No. The application is handled by VA Healthcare's Prosthetics and Sensory Aids Service, not by the VBA rating office. It does not trigger a re-examination of your rating. See the future reexaminations guide for what does and does not trigger one.

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