Disability Compensation is a benefit paid to a veteran because of injuries or diseases that happened while on active duty, or were made worse by active military service. It is also paid to certain veterans disabled from VA health care. The benefits are tax-free. This benefit program evaluates disability resulting from all types of diseases and injuries encountered as a result of military service.

The degrees of disability that are determined by VA represent, as far as can practicably be determined, the average loss in wages resulting from covered diseases and injuries and their complications in civil occupations. Generally, the degrees of disability specified are also designed to compensate for considerable loss of working time from exacerbations or illnesses...

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