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. A new clothing-allowance application must be filed by August 1 for the current calendar year. File earlier in the year to be safe; late applications generally roll to the next year's payment cycle. 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." Up to four allowances can be paid in the same year if multiple distinct sources of damage exist.

Eligibility

You qualify if at least one of the following is true:

  • 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 causes ordinary wear or tear of clothing in regular use.
  • 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 through staining or chemical degradation of 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.

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
  • Coats and outerwear (in most cases)

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.

Multiple allowances in the same year

A veteran can receive up to four clothing allowances in the same year if each is supported by a distinct source of damage. Examples:

  • Two prostheses: a veteran with bilateral lower-extremity prostheses can receive two allowances, one per prosthesis.
  • Prosthesis plus skin medication: one allowance for the prosthesis, a second for the topical medication.
  • Multiple distinct prosthetic devices: a prosthesis and a back brace covering different body areas may both qualify if both cause separate wear.
  • Skin medications for distinct conditions: separate topical medications for distinct service-connected skin conditions affecting different body regions.

The four-allowance cap is the maximum; 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. The form can be submitted via My HealtheVet, by mail to your VA Medical Center's Prosthetic and Sensory Aids Service, by fax, or in person at the prosthetics office.
  4. VA reviews. Approval is processed by VHA Prosthetics, not by the disability rating office; the application does not trigger a re-examination of your service-connected rating.
  5. Payment. Approved allowances are paid annually around the same date each year.
The allowance does not touch your disability rating. Clothing-allowance applications go to the VHA prosthetics office, not the VBA rating office. Filing does not put your service-connected rating at risk of reduction. Past myth-busting on this point: the VA itself has stated that the application "will not come across the desk of a rater."

Renewal, changes, and special situations

  • Automatic renewal. Once approved, the allowance renews annually without a new application as long as the qualifying conditions and prescribed devices remain in place.
  • 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 5313, payments are reduced when a veteran is incarcerated for more than 60 days for a felony conviction. The clothing allowance is reduced proportionally if the correctional institution provides clothing.
  • Surviving spouses and dependents. The clothing allowance is veteran-specific and does not pay to survivors.

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?

The amount is set by statute and adjusted annually with the cost-of-living adjustment. Current amounts are listed on VA.gov and updated each year (typically each December for the following calendar year). The amount is the same for each qualifying source, with up to four sources counted.

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.

Related guides

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One-time vehicle grant for loss-of-use conditions.
SMC-L (loss of use)
Special Monthly Compensation for prosthetic-related conditions.
Healthcare and ratings
How VA disability rating shapes your VA healthcare access.
Little-known benefits
Other federal benefits most veterans miss.

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