Medical expenses are not subtracted dollar-for-dollar. The pension calculator applies the existing site rule that only unreimbursed expenses above 5% of the selected MAPR reduce countable income, then screens current reported assets plus IVAP against the net worth limit.
VA Pension income rules are separate from mortgage qualifying income; the mortgage income guide explains how tax-free VA disability income can be counted differently for lending.
If you are comparing needs-based pension with disability compensation, the combined ratings guide explains how service-connected disability ratings are combined for compensation.
Example
Worked example
Example: a veteran with no dependents uses the basic 2026 MAPR of $17,441, has $10,000 in annual income, and reports $2,000 in annual unreimbursed medical expenses.
Five percent of $17,441 is $872.05. Only the medical expenses above that threshold count, so $2,000 - $872.05 = $1,127.95 deductible. Income for VA purposes becomes $8,872.05, leaving an estimated annual pension of $8,568.95, or about $714.08/month.
Common mistakes
What people get wrong
- Subtracting every medical dollar instead of only the amount above 5% of MAPR.
- Forgetting that Aid & Attendance and Housebound status use higher MAPR categories.
- Ignoring the current net worth screen used by the pension calculator.
Run the numbers
Use the matching calculator to test your own dates, ratings, dependents, income, or benefit category with the same methodology described here.
Try the VA Pension Calculator