by Chris Pearce

Created on: April 18, 2009   Last Updated: April 28, 2009

The US Department of Veterans Affairs (VA) may pay disability compensation benefits to veterans for a disability resulting from, or made worse by, an injury or disease incurred on active duty or training. To be eligible, a veteran cannot have been discharged under dishonourable conditions. This benefit pays between $123 and $2,673 a month, depending on the extent of disability. Additional payments may be made to a veteran who has a spouse or children, or who has a very severe disability, or who has a disabled spouse. The benefits are not taxed.

The way to apply for this benefit is to fill out VA Form 21-526, "Veterans Application for Compensation and/or Pension." Either print the form out and fill it in by hand, or complete the form on the computer screen and print it out. Remember that information typed on the form cannot be saved electronically. Alternatively, the form can be completed online at the Veterans ON-line APPlication (VONAPP) website.

There are four parts to the 23-page form. Part A asks for general information. Part B is about compensation, part C covers dependency, and part D is for a pension. If the veteran is applying for compensation only, there is no need to fill out part D. If applying for both compensation and a pension, the whole form must be completed.

Gathering information will perhaps be the lengthiest part of the process and reinforces the need to retain records and keep them in one accessible place. To fill out part A, a veteran needs to know details of the places where they served together with dates, as well as any military benefits already received and the amounts. Discharge or separation papers will need to be attached to the completed VA Form 21-526. This would usually be a DD-214 form, "Report of Separation," either the original or a certified copy. If the veteran doesn't have one, a copy can be requested by filling out an SF180 form, "Request Pertaining to Military Record," and sending it to the address on the form, or it can be requested online.

Information required for part B includes details of the disabilities being claimed, treatment dates, and places of post-service treatment, as well as events or environmental exposures that caused the disabilities. A veteran will need their service medical records, plus records indicating the disability occurred during service, and current medical records showing the disabilities still exist.

Part C asks the veteran for documentary evidence of a spouse and children. This includes a marriage

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