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Section B – Request for Information Regarding State Bonus or Tax Exemption

Updated Feb 17, 2022

In This Section

  

1.  Requests to VA Concerning a State Bonus or Tax Exemption

Introduction

   This topic contains information on requests to VA concerning a State bonus or tax exemption, including

Change Date

   June 11, 2015

XIII.ii.4.B.1.a.  When to Provide Information to a State

   If a State requests information from Department of Veterans Affairs (VA) records in order to make a determination regarding an individual’s eligibility to a particular State bonus or tax exemption, furnish any available information upon authorization of the
  • Veteran, or
  • next of kin of a deceased Veteran.

XIII.ii.4.B.1.b.  Nature of Information to Provide to a State

   Restrict the information that is furnished to matters of record.  It is
  • proper to state factually that a Veteran is not less than 10-percent disabled and is receiving compensation, but
  • improper to state that
    • a certain person is a dependent of a Veteran, or
    • a Veteran or a certain person is or is not entitled to a tax exemption or State bonus.
Notes:
  • Whether the Veteran or a certain person is or is not entitled to a tax exemption or State bonus is for determination by the local authorities under applicable State legislation.
  • If a claim for service connection for the cause of disability or death, or for permanent and total (P&T) disability, is pending, but VA has not made a determination, inform the requester of this fact.

XIII.ii.4.B.1.c.  When to Provide Certification Without Further Rating Action

  
If payment of pension to a Veteran who is age 65 or older is denied or discontinued because of excessive income, VA may certify that a Veteran has a P&T disability rating in effect without a rating decision.
 
Note:  Do not
  • make a rating decision unless a claim for VA benefits has been received, or
  • request a rating decision if a denial based on excessive income or some other bar has become final.
Reference:  For information on when to rate previously discontinued Veterans’ pension claims, see M21-1, Part IX, Subpart ii, 2.A.4.