Special Monthly Compensation (SMC)

What is SMC?

SMC (Special Monthly Compensation) is a tax-free benefit for veterans with severe service-connected disabilities, offering higher payments than standard disability for needs like limb loss, blindness, or needing daily help (Aid & Attendance) for basic care.

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Key Aspects

• Tax-Free: Unlike regular disability pay, SMC is not taxed.
• Higher Rates: Paid at a higher rate than standard 100% disability.
• Eligibility: For specific severe disabilities including loss of limbs, eyes, deafness, blindness, or being permanently housebound.
• SMC-K: For loss/loss of use of specific body parts (e.g., one hand, one foot).
• SMC-S (Housebound): For veterans with 100% disability who are housebound, or have a 100% rating plus another 60% rating.
• SMC-R: For veterans needing daily help with basic life functions from another person.