M21-1 Manual  /  Part XIII, Subpart ii, Chapter 1, Section C

Compensation-Based Income Calculations for Social Security Administration (SSA) Purposes

M21-1, Part XIII, Subpart ii, Chapter 1, Section C

Overview

In This Section

 This section contains the topic “Calculating Department of Veterans Affairs (VA) Income for SSA Purposes When the Benefit Is Disability Compensation.”

1. Calculating VA Income for SSA Purposes When the Benefit Is Disability Compensation

Introduction

 This topic contains information on calculating VA income for SSA purposes when the benefit is disability compensation, including
  • determining the amount of additional disability compensation to which a Veteran is entitled for a
    • spouse, parent, or school child, and
    • child under age 18
  • calculating VA income for SSA purposes when the benefit is disability compensation, and
  • example of a response to a request for VA income for SSA purposes when the benefit is disability compensation.

Change Date

June 14, 2015

XIII.ii.1.C.1.a. Determining the Amount of Additional Disability Compensation to Which a Veteran Is Entitled for a Spouse, Parent, or School Child

 Use the table below for instructions to determine the amount of additional disability compensation to which a Veteran is entitled for a
  • spouse
  • parent, or
  • school child.
If the dependent is ...Then the amount of additional disability compensation to which the Veteran is entitled is ...
a spouse the difference between the Veteran Alone and Veteran With Spouse Only rate on the rate table that covers the time period the Social Security Administration (SSA) specifies in Part I of SSA Form L1103. Important: When calculating the amount of additional compensation to which a Veteran is entitled for his/her spouse, do not include the additional benefits payable because the spouse requires the aid and attendance (A&A) of another person.
a parent the difference between the Veteran Alone and Veteran With One Parent rate on the rate table that covers the time period SSA specified.
a school child the rate for Each Additional Schoolchild Over Age 18 on the rate table that covers the time period SSA specified.
Reference: For more information on general procedures for handling SSA requests for the amount of Department of Veterans Affairs (VA) benefits an Supplemental Security Income (SSI) claimant receives, see M21-1, Part XIII, Subpart ii, 1.B.

XIII.ii.1.C.1.b. Determining the Amount of Additional Disability Compensation to Which a Veteran Is Entitled for a Child Under Age 18

 Use the table below for instructions to determine the amount of additional disability compensation to which a Veteran is entitled for a child under the age of 18. Important: When following the instructions in the table below, do not recognize apportionees as dependents.
If ...Then ...
the Veteran was not entitled to additional benefits for other dependents during the time period SSA specified in Part I of SSA Form L1103 the additional benefits to which the Veteran is entitled for the child is the difference between the Veteran Alone and Veteran With Child Only rate on the rate table that covers the same time period.
  • the Veteran was entitled to additional benefits for other dependents during the time period SSA specified, and
  • none of the other dependents were children under the age of 18
the additional benefits to which the Veteran is entitled for the child is the difference between
  • the rate to which the Veteran was entitled during the same time period for all of his/her dependents (except apportionees), and
  • the rate to which the Veteran was entitled during the same time period for all of his/her dependents except the child (and any apportionees).
the Veteran was entitled to additional benefits for other children under the age of 18 during the time period SSA specified the table below describes the additional benefits to which the Veteran is entitled for each child under the age of 18.
The additional benefits to which the Veteran is entitled for …Is …
the youngest child the difference between
  • the rate to which the Veteran was entitled during the same time period for all of his/her dependents except children under the age of 18 (and apportionees), and
  • the rate to which the Veteran was entitled for
    • the same dependents, and
    • only one child under the age of 18.
Note: If the youngest child is a twin or triplet, randomly select one of them as the youngest child.
each remaining child under the age of 18 the rate for Each Additional Child Under Age 18 on the rate table that covers the time period SSA specified.

XIII.ii.1.C.1.c. Calculating VA Income for SSA Purposes When the Benefit Is Disability Compensation

 Follow the steps in the table below to calculate VA income for SSA purposes when the benefit is disability compensation.
StepAction
1 Use the rate table that covers the time period SSA specified in Part I of SSA Form L1103 to determine the basic rate of payment to which the Veteran was entitled during the same time period. Important:
  • Include the additional compensation to which the Veteran is entitled each month for his/her dependent(s), including dependents to whom VA apportioned benefits during the time period SSA specified.
  • Do not include the additional compensation payable because
    • the Veteran is entitled to special monthly compensation (SMC), or
    • VA has determined the Veteran’s spouse requires the A&A of another person.
2 Subtract from the rate of payment identified in Step 1 any benefits VA withheld, deducted, or offset each month during the same time period for any of the reasons specified in M21-1, Part XIII, Subpart ii, 1.B.
3 Was the Veteran entitled to additional benefits for a dependent or dependents during the time period SSA specified?
  • If yes, go to the next step.
  • If no, go no further. The outcome of the action described in Step 2 represents the Veteran’s VA income for SSA purposes.
4
  • For each dependent to whom VA apportioned benefits during the time period SSA specified, subtract the amount of the apportionment from the outcome of the action described in Step 2.
  • For each dependent to whom VA did not apportion benefits, subtract from the outcome of the action described in Step 2 the amount of additional benefits to which the Veteran was entitled for each of these same dependents, as derived from the calculations described in M21-1, Part XIII, Subpart ii, 1.C.1.a and b.
The amount that remains represents the Veteran’s VA income for SSA purposes. Important: If VA apportioned benefits to some but not all of the Veteran’s dependents, subtract the results of both of the calculations described in this step from the outcome of the action described in Step 2.
5 Did SSA list any of the dependents identified in Step 4 as an SSI claimant in Part I of SSA Form L1103?
  • If yes, go to the next step.
  • If no, go no further.
6 Follow the instructions in M21-1, Part XIII, Subpart ii, 1.B.1.b.

XIII.ii.1.C.1.d. Example: Response to a Request for VA Income for SSA Purposes When the Benefit Is Disability Compensation

Scenario:
  • VA rated a Veteran 90-percent disabled for service-connected disabilities.
  • The Veteran is entitled to SMC under 38 U.S.C. 1114(k).
  • The Veteran is also entitled to additional disability compensation for
    • a spouse
    • a parent
    • two children under the age of 18 (Dallin is eight years old; Paul is twelve), and
    • three schoolchildren, Jacob, Mason, and Jonah.
  • VA apportions $75.00 of the Veteran’s disability compensation to the parent.
  • VA apportions $175.00 to Jonah.
  • The provisions of M21-1, Part XIII, Subpart ii, 1.B.2 do not affect the calculation of VA income for SSA purposes in this scenario.
  • SSA identified all of the Veteran’s dependents as SSI claimants in Part I of SSA Form L1103.
  • The time period SSA specified in Part I of SSA Form L1103 falls between January and October of 2013.
Actions:
  • Enter in Part II, Section C, of SSA Form L1103 the amount of $1778.00.
  • Enter in Part II, Section D, of the form
    • the name of the Veteran’s spouse and the amount of $141.00
    • apportionee, the name of the Veteran’s parent, and the amount of $75.00
    • Dallin and the amount of $103.00
    • Paul and the amount of $70.00
    • apportionee Jonah and the amount of $175.00
    • Jacob and the amount of $226.00, and
    • Mason and the amount of $226.00.
Important: Because the apportionment to Jonah and to the Veteran’s parent are less than the additional benefits VA pays the Veteran for each of these dependents, the difference between the amount of each apportionment and the amount of additional benefits VA pays the Veteran for each dependent (a total of $89.00) must be included in the calculation of the Veteran’s VA income for SSA purposes.

Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part XIII, Subpart ii, Chapter 1, Section C (U.S. government work, reproduced for reference). Browse all sections →