Income Verification (IV) Frequently Asked Questions (FAQs)
Questions
- Does HEC have access to my income tax return?
- What do you mean by earned and unearned income?
- What are some examples of income excluded from the Income Verification process?
- What does the VA consider as assets or net worth?
- Why is my prior year income being used for verification?
- As a combat veteran, will I be required to provide financial information and be billed?
- Why do you need the Social Security Number (SSN) of my spouse and/or dependents?
- I received a letter saying VA could not verify my SSN, what does that mean?
- If I decline to provide income and agree to make copays, will you still verify my income?
- What happens if the matching process reveals that my income is higher than the threshold?
- What happens if at the end of the process my income is higher than the income threshold?
- What if I receive a bill and cannot pay?
Answers
VA verifies income and net worth information provided by certain veterans during the financial assessment (means test) process. The financial assessment is used to determine veterans’ eligibility for health care services, enrollment priority assignment and obligation to make copays for VA health care and/or medications.
VA’s computer matching agreements allow VA to match the gross household income information, furnished by the veteran with earned and unearned income information provided to the Internal Revenue Service (IRS) and the Social Security Administration (SSA).
If there is a discrepancy between the information provided by the veteran and that provided by IRS and SSA the veteran and spouse are contacted by HEC to verify their income. If the veteran’s gross household income is determined to exceed the established thresholds, the veteran is informed they may be responsible for copays for health care and prescriptions.
No, HEC does not have access to your income tax return. IRS and SSA share earned and unearned income data reported by employers and financial institutions.
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Earned income is usually wages you receive from working. Unearned income can be interest earned, dividends received, money from retirement funds, Social Security payments, annuities, or earnings from other assets. Examples of earned income include, but are not limited to:
- W-2 Wages - employment
- Bonuses
- Commissions
- Sick pay
- Self employment
- Net earnings from business
- Net earnings from farms
- Net earnings from rental property
Examples of unearned income include, but are not limited to:
- 1099-S Statement for recipients of proceeds from real estate transactions; installment sales; gifts & inheritances of property or cash
- 1099-B Stocks & Bonds (net gain)
- 1099-DIV Statement for recipients of dividends and distributions
- 1099-INT Statement for recipients of interest
- 1099-MISC Statement for recipients of miscellaneous income
- Rents (expenses deductible)
- Royalties
- 1099-R Statement for recipients of retirement plans
- Gross distribution/other income
- Unemployment compensation
- Agricultural subsidies
- W2-G Statement of gambling winnings; prizes and awards
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Payments for:
- Agent Orange and Alaska native claims settlements
- Supplemental Security Income (SSI) and welfare income
- Crime Victims Compensation Act
- Disaster relief and FEMA/disaster insurance payments
- Discharge of indebtedness - bankruptcy –foreclosures
- Domestic Volunteer Service Act therapeutic and rehabilitation funds
- Payments to foster parents
- Income tax refunds
- Insurance dividends
- Interest on IRAs
- Loans
- Occasional sale of property
- Scholarships and grants for school attendance
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- Stocks & bonds
- Certificates of deposit (CD)
- Individual retirement accounts (IRAs) & 401Ks
- Savings accounts
- Coin & stamp collections
- Car collections
- Boats, yachts and recreational vehicles
- Rental property
- Real estate other than your primary home
- Vacation homes or properties used for pleasure or investment, including timeshare properties
- Cash, including bank accounts
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The law specifies that eligibility for cost-free medical care be based on your gross household income for the calendar year prior to the year of care.
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The National Defense Authorization Act (NDAA) of Fiscal Year 2008, (Public Law 110-181), was signed into law January 28, 2008. It extended the period of enhanced enrollment opportunity for health care eligibility provided a veteran who served in a theater of combat operations after November 11, 1998 as follows:
- Currently enrolled combat veterans will have their enhanced enrollment period automatically extended to 5 years from their most recent discharge.
- New enrollees discharged from active duty on or after January 28, 2008 are eligible for this enhanced enrollment health benefit for 5 years after their date of their most recent discharge from active duty.
- Combat veterans who never enrolled and were discharged from active duty between November 11, 1998 and January 27, 2003 may apply for this enhanced enrollment opportunity through January 27, 2011.
As before, combat veterans will be assigned to Enrollment Priority Group 6, unless eligible for a higher Priority Group, and will not be charged copays for medication and/or treatment of conditions that are potentially related to their combat service. Veterans who enroll with VA under this enhanced authority will continue to be enrolled even after their enhanced eligibility period ends, although veterans enrolled in Priority Group 6 may be shifted to Priority Group 7 or 8, depending on their income level, and required to make applicable copays.
Combat veterans are asked to complete a financial assessment to determine the possible need for copays for care unrelated to combat service.
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The financial assessment is based on your gross household income information. VA needs the SSN of your spouse and dependent children to match the information you provided about your gross household with IRS and SSA information.
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When you applied for enrollment, you provided VA with your personal information needed to establish your record and eligibility for VA health care benefits. SSA has informed us that your SSN, name or date of birth in VA health care records does not match your information on file with SSA. When this occurs, we contact you for assistance in correcting VA records.
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No, if you have agreed to make copays for care you are not required to provide your income information and we will not make any further attempts to verify your income for that year.
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You will be provided an opportunity to review the IRS and SSA data and provide proof if that information is incorrect. If you do not provide this proof, you will be charged copays for health care and prescriptions you were provided for treatment of your nonservice-connected conditions.
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You will be charged copays and we will notify VA facilities involved in your care to initiate billing for services provided. Your enrollment priority status may be changed if your financial status is adjusted by the Income Verification (IV) process.
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If you are unable to pay your bill, you should discuss the matter with the Revenue Office at the VA health care facility where you received your care. There are three possible options that may be available to you:
- Hardship – for current and future bills.
- Waiver – for past debts only.
- Offer in Compromise – for past debts only.
HEC does not make these copay decisions. You must contact the facility at which you received the care.
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