In regards to VA Benefits, any interest or dividends related to stocks, CDs, or bonds that create a 1099 are considered income

38 C.F.R. Section 3.272(e) Related to Income Exemptions

(e) Profit from sale of property. Profit realized from the disposition of real or personal property other than in the course of business, except amounts received in excess of the sales price, for example, interest on deferred sales is included as income. In installment sales, any payments received until the sales price is recovered are not included as income, but any amounts received which exceed the sales price are included, regardless of whether they represent principal or interest.

Therefore, any interest or dividends related to stocks, CDs, or bonds that create a 1099 are considered income i.e. paid $20,000.00 for CD, but CD was cashed in at  $30,000, due to accumulated interest.  The difference, $10,000 is countable income for VA pension purposes. 

If you do not declare this income, during the calendar year the CD was cashed in, it may lead to a demand for overpayment by the VA. As a 1099 was created, for the CD income, the VA will probably catch it, due to the Income Verification Match. 

To increase your monthly income, please contact us about a FREE HANDBOOK about VA Benefits, written by David Wingate, an accredited VA Attorney, of Senior Life Care Planning, LLC, go to or if you require additional information about VA Benefits, visit our Senior LCP's Website.

We also have a Blog on Elder Issues and Veteran's Benefits.

If you are not receiving our Newsletter, go ahead and subscribe to our free NEWSLETTER to stay on top of senior issues.

Tags: , , , , , , , , , , , , , , , ,
Posted on: No Comments

Leave a Reply