2026 Tactical Tax Guide: Resources for Disabled Veterans and Families
2026 Tactical Tax Guide: Resources for Disabled Veterans and Families For the 2026 tax season, the intersection of the One Big Beautiful Bill Act (OBBBA) and new VA Cost-of-Living Adjustments (COLA) has created a complex landscape for veteran households. At WarriorRetirement.com , we track the numbers to ensure you keep every dollar you’ve earned through service. 1. 100% Tax-Exempt VA Disability Income As of 2026, all VA Disability Compensation remains federally tax-free . Even with the 2.8% COLA increase that took effect in January, your benefits (including SMC and DIC for survivors) do not count toward your Gross Income. You are not required to report these payments on your federal return. 2. The $6,000 OBBBA "Senior Bonus" for Veterans If you or your spouse are 65 or older , the OBBBA provides a new $6,000 additional deduction per person. For a disabled veteran couple, this adds a $12,000 tax shield on top of the standard deduction. This is an "above-the...