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Edward M, Mathews, Claims \gent of the Virginia Division )f War Veterans claims said oday that practically all veterans’ benefits are tax-free ind need not be reported on income tax returns. However, interest earned or\ 31 life insurance dividends left on deposit with the VA, is not classed as a benefit but as earned income, and must be reported on tax returns. Proceeds of the GI policy and the dividends them selves are tax-free and need not be reported, according to Mr. Mathews. Other VA benefits which are not taxable include education and training allowances, subsistence payments to disabled veterans in vocational rehabilitation training, compensation and pension payments, grants to seriously disabled veterans for ‘wheelchair" homes and motor vehicles, and all benefits to families of deceased veterans. Mr. Mathews of the Front Royal Office of the DWVC, is in Washington at the Clerk’s Office on 1st and 3rd Monday from 2:00 to 4;00 p.m. and will gladly give more details on this subject,
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