Letter:
Jim,
It was refreshing to run across your site and as a 55 y.o. Vietnam-era service connected veteran I was comforted to see your advice for unemployable vets who have gotten worse to stay on UI. I left the
USN with service-connection which worsened until I was ruled 90% service disabled. With the help of the DAV I petitioned for unemployability and received it in 02/96. Even though my symptoms have worsened (I've developed bi-lateral foot drop due to a service-connected spinal injury which clearly would give me the extra 10% for 100%) I was advised by the DAV to let "sleeping dogs lie" (as you advised in your column) and just leave my 12 year old rating as is: additionally, I still receive regular treatment.
Unfortunately, I'm trying to find information currently for which the local DAV is not responding (their Oakland office seems to have declined in the NSO officer quality since they helped me in '96). My landlord wants me to move from my flat of 25 years in SF yet rental law protects me. As a disabled person SF law requires him to refund my security deposit and to pay me an additional 8K amount to help me relocate as rents have tripled since I moved in here. As an incentive he wants to gift me the max gift amount of 12K (which I will desperately need to find a place near my doctors at the SFVAMC).
SSA is told me they were uninterested in unearned income and the IRS is only interested for tax purposes if my landlord gifts me more than 12,000.00 in 1 year. My landlord is not required (and won't because the $ comes from his nontaxable reverse mortgage fund) to claim the gift on his taxes. I'm too fearful to talk to the VA directly. It is a true gift to assist my relocation for which I am not providing any work or services to receive. I can't seem to get an answer from the DAV these days as to whether this could hurt my UI - I'd rather not move if it does. I'm searching the net but only come up with hits for UI + Gifts relative to the pharmacy, co-payments and non-service connected vets. Can you please tell me if a service-connected vet (90%) like me needs to be concerned about this gift? I don't/can't work and I never earn one iota of earned income.
Thank you in advance and Bless you for your help to vets.
Reply:
Take the money. NEVER ask the VA anything like that. You'll get the wrong answer and then you'll try to work with them and you'll get more wrong answers. Now you have a source for information about all things VA as well as a new friend.
Your VA disability is awarded to you for the degree of the disability and is not income specific. As you are rated 100% under the IU rules you can't work at "gainful employment" and earn any more than poverty level...about $10,000.00.
However, if you win the Lotto, it will not affect your disability compensation. I get urgent emails all the time from Las Vegas when nervous veterans roll 'em high and suddenly have an extra $50,000.00 in their pockets. Some want to give it back! (I lived there for a time and never had that luck. Just damn.) VA doesn't care.
The theory is simple...no matter the size of the gift or winnings, your degree of disability doesn't change...and that's why you have the compensation.
Keep in mind that you aren't 90%...you're a 100% disabled veteran. You just used the IU path to achieve that. There is no difference in money or benefits. I'm IU and I believe it to be the safer (and thus better) of all.
Pension is different and a lot of people are confused by the two. Pension is awarded to veterans who are not service connected and are also very low income. Pension is often the final safety net for a vet and if he earns more than poverty level, he isn't eligible.
Bottom line...you don't need to be a bit concerned about VA.
I hope this comforts a bit. I also wonder if you aren't eligible for some other benefits? We should talk about Aid & Attendance and Homebound when you're up to it.