pension if he or she: Was not discharged for dishonorable reasons; and, Served 90 days of active military duty; and, Served at least one day during wartime ("wartime" as determined by the VA); and, Had countable family income below a certain yearly limit; and, Is age 65 years or older; or Regardless of age is permanently disabled, not due to willful misconduct Calculation The annual pension is calculated by adding all of the person's countable income. Any deductions are then subtracted from that total. The remaining total is deducted from the maximum pension limit (taking into account the number of dependents, spouse, etc.). This final number is the yearly pension; dividing it by 12 results in the monthly pension. Tax-free benefit The veteran's pension is a tax-free benefit not subject to federal income tax. Regarding state tax, the veteran or beneficiary must check with the taxing authority in his or her state of residence to determine if the pension is subject to state income tax. Income received per month Married veterans – federal tax-free up to $2054 per month Single veterans – federal tax-free up to $1732 per month Surviving spouses – federal tax-free up to $1113 per month Additional benefits In addition to monthly payments, certain veterans may be eligible for additional benefits such as automobile grants, special adaptive housing, traumatic service members group life insurance, educational benefits and health care. Aid and Attendance Aid and Attendance is an amount awarded in addition to the basic pension. This benefit takes into account a person's unreimbursed (out-of-pocket) medical expenses. These medical expenses are subtracted from a person's gross income to determine eligibility. A veteran is eligible for Aid and Attendance when he or she Requires the regular aid of another person to perform everyday functions (bathing, eating, dressing, etc.) Is bedridden Is a patient in a nursing home Is blind or nearly blind Housebound A veteran is eligible for housebound benefits when he or she: Has a single permanent disability that results in confinement to his or her immediate premises Has a single permanent disability rated as 100% disabling and a secondary disability rated as 60% disabling References External links Aid and Attendance Application FREE Aid and Attendance Resources and Assistance Retirement plans in the United States Veterans' affairs in the United States