If a veteran transfers an income fund, how does the VA look at the income, and does it matter?
When a veteran files an application for NSC pension, the veteran must be eligible as of the date of entitlement i.e. informal or primary application. Income is then projected outwards from the effective date (first day of the next month). For instance, if the VA received an application on February 20th, the date of entitlement is the 20th, but the effective date (retro-active payment date) would be March 1st, so all income from March 1st would be countable, but none before.
However, a potential issues arises problem. Because, every claim is audited every two to four years. Therefore, the VA cross references with the IRS on the Income Verification Match i.e. 1099s, W2s, and HUD statements. Consequently, the 1099 will show the INCOME for the entire year, regardless of when the veteran became eligible. Thus, it is VERY important for every veteran to keep detailed financial records to defend any potential over-payment demands that may in the future i.e. to show that specific income was actually received prior to the effective award date due to an other than January 1st date.Tags: 1099, audit, eligible, files application, income fund, IRS, potential issue, veteran VA benefits