What is Special Monthly Compensation?
Special Monthly Compensation, or SMC, is an additional tax-free VA payment above the standard rating schedule for especially serious disabilities such as loss of use of a limb, loss of a creative organ, blindness, or the need for aid and attendance.
SMC-K is a flat additional amount, about $133 per month at the current-year rate, paid for loss or loss of use of specific body parts including a creative organ, a hand, a foot, or for certain other losses. Multiple SMC-K awards can stack on top of your regular compensation.
What is the difference between housebound and aid and attendance SMC?
SMC-S applies when you are substantially confined to your home due to disability. Aid and attendance levels such as SMC-L and above apply when you need help with daily activities like bathing, dressing, or eating, and they pay more than housebound benefits.
No. Special Monthly Compensation, like all VA disability compensation, is completely tax-free and is not reported as income.