Prison changes the payment, not the rating. On the 61st day after a felony conviction the check drops to the 10 percent rate, but the withheld money is not simply gone: a spouse, child, or dependent parent can apply to receive it while the veteran is inside, and the full rate can restart at release with the right paperwork.
Incarceration changes the payment, not the rating
A felony conviction that leads to prison does not erase your VA disability rating. It does reduce what VA pays while you are incarcerated. Knowing the rule, the timing, and the option to redirect money to family lets you and your dependents plan ahead.
The 61st day rule
Under 38 CFR 3.665, when a veteran is incarcerated in a federal, state, or local facility for more than 60 days after conviction of a felony, VA reduces compensation starting on the 61st day. The reduction depends on your rating:
- A veteran rated 20 percent or more is reduced to the 10 percent rate.
- A veteran rated at 10 percent is reduced to half of the 10 percent rate.
This is a payment reduction only. Your underlying rating stays the same, and the reduction is tied to the period of incarceration, not to the merits of your claim.
Pension is treated differently
For nonservice connected Veterans Pension, the rule in 38 CFR 3.666 is stricter: pension generally stops after the 61st day of incarceration for a felony or a misdemeanor. The statute behind these limits is 38 USC 5313.
Family can receive the difference
The money withheld from the veteran is not lost. While the veteran is incarcerated, the withheld amount can be apportioned to the veteran's spouse, child, or dependent parent based on their need. A dependent applies for this apportionment. It helps families who relied on the veteran's check.
Reinstatement on release
Payment at the full rate can be reinstated when you are released. To avoid a gap, notify VA before or promptly after release, with proof of the release date. If you complete a rehabilitation program, there may be a path to restore a portion sooner in limited cases. Keep your release paperwork.
Steps to take
- Tell VA about the incarceration to avoid a later overpayment debt.
- Have eligible dependents apply for an apportionment of the withheld amount.
- Keep proof of conviction dates and the facility, and later the release date.
- Contact VA promptly on release to reinstate the full rate.
This is educational. It is not legal advice. A VA accredited representative can help with the apportionment and reinstatement steps.
Sources
- 38 CFR 3.665 (incarcerated beneficiaries, compensation)
- 38 CFR 3.666 (incarcerated beneficiaries, pension)
- 38 USC 5313 (limit on payment to incarcerated persons)
- VA, VA disability compensation eligibility
Related on this site
- Apportionment of VA compensation
- VA long-term care, nursing home, hospice, and in-home care rules
- Protected VA ratings: the 5, 10, and 20 year rules, age 55, and 100% P&T
Common questions
Does going to prison take away my VA disability rating?
No. A felony conviction that leads to prison time does not erase your rating. Under 38 CFR 3.665, VA reduces the amount it pays while you are incarcerated, but the underlying rating stays the same, and full payment can be reinstated when you are released.
What is the 61st day rule?
When a veteran is incarcerated in a federal, state, or local facility for more than 60 days after conviction of a felony, VA reduces the compensation starting on the 61st day, under 38 CFR 3.665 and 38 USC 5313. A veteran rated 20 percent or more is reduced to the 10 percent rate. A veteran rated at 10 percent is reduced to half of the 10 percent rate.
Can my family receive the withheld money?
Yes. The amount withheld while the veteran is incarcerated can be apportioned to the veteran's spouse, child, or dependent parent based on their need. A dependent applies for the apportionment, and it helps families who relied on the veteran's check.
Is VA pension treated the same as compensation during incarceration?
No, the pension rule is stricter. Under 38 CFR 3.666, nonservice connected Veterans Pension generally stops after the 61st day of incarceration, and it applies to a felony or a misdemeanor, not just felonies.
How do I get my full VA payment back after release?
Notify VA before or promptly upon release, with proof of the release date, so payment at the full rate can be reinstated without a gap. Also tell VA about the incarceration itself when it begins; that avoids an overpayment debt VA would later collect.