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VA Disability Back Pay: Do You Qualify And How Does It Work?

Legally reviewed by Brendan Garcia , Partner and Lead Attorney

Veterans can recover back pay for service-connected disabilities after a successful appeal.

Summary

  • While the VA is processing an appeal for a service-related disability, veterans may be earning VA disability back pay benefits.
  • Your effective date, which is usually the day you filed your VA disability claim, activates your entitlement to back pay compensation. 
  • VA disability back pay refers to the retroactive compensation you should have been receiving since you became eligible for benefits.
  • Veterans owe a portion of their VA disability back pay benefits to their attorneys to cover their legal services.

If you sustained a military-related injury or sickness, the Department of Veterans Affairs may approve you for disability pay and other benefits. The process takes time, but you may also qualify for back pay after they approve your claim.

To ensure that you receive the back pay benefits you are entitled to, it’s a good idea to have a veterans disability benefits denial attorney review your case. As your VA appeal progresses, you are potentially accumulating back pay benefits, but VetLaw recognizes that you are also acquiring expenses.

Our veterans disability claims lawyers will work closely with you to secure the VA disability benefits you are owed to offset these costs and cover your financial losses going forward. As VA-accredited legal experts with nearly a decade of experience serving disabled vets as a firm, we are equipped to maximize your VA disability benefits.

Our dedication to our clients is unmatched, which you can experience firsthand in a free case evaluation with our team. Get in touch with us at (855) 391-1579 or fill out a contact form to schedule a free consultation.

Understanding How VA Disability Back Pay Works

The VA calculates VA disability back pay based on your disability effective date, not on your application or approval date. You may also receive back pay if the VA approves your previously denied claim after a review or an appeal.

Veteran’s disability payments are tax-free and follow statutory guidelines established under Title 38 Chapter 1, Part 4 of the U.S. Federal Code. Disability pay isn’t an automatic entitlement. You must meet VA eligibility requirements, navigate the VA claims process, and wait for a decision.

If you are currently on active duty, you may submit a Pre-Discharge Claim which should speed up the process. Otherwise, you must follow VA’s submission procedure for Standard claims.

VA’s Disability Claim Process: How to Get Back Pay for VA Disability

The VA’s disability claims process is similar to an insurance claim investigation. It’s a comprehensive procedure; so it usually takes time to accomplish. You initiate the process by submitting an application, either online or through a local VA office.

You may also download VA Form 21-526EZ, Application for Disability Compensation and Related Compensation Benefits, and mail it in. After you submit your claim, you must wait for VA to work through these steps:

  • Receive your claim
  • Perform an initial review
  • Request evidence
  • Decide your eligibility and VA disability rating

When the VA receives the information it needs, it conducts a final review, decides your eligibility, and sends you a notification packet. If you qualify for benefits, the VA will also assign a disability effective date.

Determining Your Disability Effective Date

Your disability effective date establishes your entitlement to VA disability back pay. It considers these factors:

  • The date you initiated your claim
  • The date of your “entitlement” (when you first became ill or injured)

Of course, it’s not exactly that simple. Other factors can change your effective date:

  • Does your injury have a presumptive service connection?
  • Is it a reopened claim?
  • Did the VA commit an error in making the original decision?

The VA Disability Compensation Effective Dates page has additional information.

Backlogs Will Affect Claim Processing Times

When you submit a claim, your application becomes one of the hundreds of thousands of veterans’ applications waiting for a disability or pension determination. The 2024 VA disability claims process has had wait times averaging over four months.

As of May 2024, the VA estimates that it takes an average of 147.2 days to complete its multi-step review and approval process. This backlog affects your claim’s progress because it means that your claim is simply on hold for one reason or another.

The VA is transparent about its backlog numbers. Vets can find detailed claim data and Workload Reports each Monday morning on the VA’s website. Here are the backlog statistics as of June 18, 2024:

  • Claim Inventory: 959,441 pending claims requiring rating, development, or a decision
  • Claim Backlog: 272,684 cases pending 125 days or longer that require rating decisions

Do I Qualify for Military Disability Pay?

The timing of each disability benefits claim depends on the type of claim filed, the injury complexity, and the amount of time it takes to collect the necessary evidence to make a decision. Throughout the process, you must follow their step-by-step instructions, and comply with each request.

Determine Your Eligibility

Before you submit your disability claim application, the VA recommends that you take a few minutes to determine if you are eligible. To qualify for disability pay, you must currently have an illness or injury that affects your body or mind. It can be a mental or physical condition. You must also have:

  • Served on active duty, active duty training, or inactive duty training, and
  • Have a disability rating for your service-related condition

Your claim must also fall within one of these circumstances:

  • An Inservice Disability Claim: You can connect your current condition to a time when you became sick or injured while in the military, or
  • A Preservice Disability Claim: You had an illness or injury when you entered the military and service made it worse, or
  • A Postservice Disability Claim: Your disability relates to your service but it didn’t appear until after you separated from the military.

Presumed Disabilities

You may also qualify for disability payments if you have a presumed disability. These include:

  • Chronic illnesses that appeared a year or longer after your discharge from the military.
  • Illnesses caused by contaminants such as toxic chemicals or hazardous materials

Your VA Disability Rating

The VA uses your disability rating to determine your payment amount. They calculate your rating by reviewing your medical records and determining your injury severity. They may also talk to relevant military personnel and interview you.

If you have two or more disability ratings, they determine a combined rating. The VA stresses that establishing a combined rating is more complicated than simply adding your separate ratings together. There is a specific percentage system for determining VA benefits.

Submitting A Fully Developed Claim

When you submit a Fully Developed Disability claim, it reduces VA processing time. You must mail in your VA Form 21-526EZ with all the available evidence and supporting documents. To use this process you must certify that:

The VA notifies you if they need any additional information to process your fully developed claim.

How a VA-Accredited Disability Benefits Lawyer Can Support You in Seeking Back Pay Benefits

You may be entitled to receive VA disability pay and back pay, but the application process is complex and sometimes the regulations change. A VA appeals attorney can assist you at any stage along the way. Attorneys help you prepare and submit your initial application for benefits.

They review your medical records and documentation before submission, and they help you comply with VA evidence requests. If the VA previously denied your disability claim, your attorney can help you resubmit your claim for an appeal or a decision review.

Contact a Veteran’s Benefits Attorney for your VA Back pay Claim

Mounting a convincing VA appeal is no small task. Establishing an accurate effective date, VA disability rating, and service connection are a few of the ways we can help you secure the VA back pay benefits you qualify for.

Our team at VetLaw has had the opportunity to prove to veterans across the U.S. that hiring a VA disability lawyer is worth it, and we want to do the same for you. You can draw on our years of experience and undeniable skills to launch a successful appeal for VA disability benefits.

One of our veterans disability benefits denial attorneys can offer valuable insight about your specific VA appeal in a free consultation. To schedule a meeting with a VetLaw VA disability lawyer, give us a call at (855) 391-1579 or fill out a contact form


Frequently Asked Questions

What percentage of my back pay VA disability benefits go to my attorney?

VA disability lawyers charge a fee for their services, but you are not responsible for paying them until after they successfully appeal your claim. At that point, they recover between 20% and 33% of the back pay VA benefits you are owed. 

There is a cap on the percentage that they can charge you, unlike for shady unaccredited VA consultants. VA-accredited veterans disability appeals attorneys are not entitled to a percentage of the future VA disability benefits you collect.

How will I receive my VA disability back pay benefits?

While future VA disability benefits are issued every month, back pay benefits are repaid in a lump sum instead of being dispersed over time. The VA distributes back pay benefits via direct deposit or check.

If you hire a VA-accredited veterans disability claims lawyer, the VA will issue the payment to them so they can recover their fee first, in accordance with your prior arrangement. Note that VA disability does not count as income for tax purposes, so you will be able to retain the remainder of your back pay benefits for your family.

How long does it take for the VA to issue back pay benefits?

After the VA grants your appeal for disability benefits, you should receive your back pay benefits within 15 days. In reality, many veterans wait longer than 15 days for their back pay benefits to arrive. Veterans who opt for direct deposit for their VA disability back pay benefits may experience shorter wait times.