6. Veterans benefits
Benefits received through the U.S. Department of Veterans Affairs give you the possibility of accessing tax-free retirement income. Most veterans’ disability benefits and military disability retirement pay are partially if not fully excluded from taxable income.
In fact, military disability retirement pay could be part of your tax-free retirement income taken in the form of a pension or annuity if you meet the following criteria:
#1. You’ve received a military disability payment before Sept. 25, 1975
#2. You’re receiving disability payments for an injury resulting from combat
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Veterans benefits are also tax-free, but this can change if the payments are used for training and education, grants for cars, etc.
