Will VA DIC payments count against Social Security earnings limit if I retire before FRA?

Good news - DIC payments from the VA do NOT count toward your Social Security earnings limit! The earnings limit only applies to wages or self-employment income. Other types of income like pensions, investment income, insurance payments, and government benefits (including VA benefits) don't count against your earnings limit. So you can receive your full DIC payment and your Social Security retirement benefits without any reduction due to the DIC specifically.

Are you SURE about this??? I thought ALL income counted against SS!!!!! My cousin got his benefits cut when he started getting some kind of VA payment and now I'm scared the same will happen to me when I apply next year!! The SSA website is so confusing and nobody at the office will talk to me!!!!

my brother gets both ss and va benefits and he said only work income counts for the limit. the va stuff doesn't matter for ss limits. but he did say something about checking with va because sometimes getting ss can affect some va benefits but not the other way around usually

While we're on this topic, I wanted to share something I discovered when I was struggling to get through to SSA about my retirement application. I was on hold for HOURS trying to ask about my pension offset (I'm a retired teacher). I found this service called Claimyr (claimyr.com) that got me through to a Social Security agent in about 20 minutes instead of waiting for hours. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. Saved me so much frustration! If you need to call SSA to confirm anything about your DIC and earnings limit, might be worth checking out.

Just to add a bit more technical detail: The earnings test (what you're referring to as the limit) specifically only counts "earned income" as defined in the Social Security Act. This means wages from employment or net earnings from self-employment. The 2025 limit for someone under FRA for the entire year is indeed around $22,320 (it's adjusted annually for inflation). For every $2 you earn above that limit, $1 is withheld from benefits. However, in the year you reach FRA, the limit is higher (about $59,520 for 2025) and the reduction is only $1 for every $3 over the limit. Once you reach FRA, there is NO limit on your earnings. As others mentioned, VA benefits including DIC do not count as earned income for this purpose. You can receive your full DIC and your Social Security retirement without any interaction between the two programs.

this is why i'm waiting until FRA to start collecting. too many rules to worry about. my neighbor started early and regrets it so much because she can't work the hours she wants at her job.

One thing that might interest you: if your benefits are reduced because you exceed the earnings limit before FRA, you'll actually get that money back in the form of a recalculation and higher monthly benefit once you reach your FRA. Many people don't realize this! The SSA will adjust your benefit amount to account for those months when benefits were withheld. So you're not permanently losing those benefits, just deferring them.

I went through something similar when i retird. My wife passed in active duty so I get DIC too. Let me tell you, the DIC does NOT count as earned income for SS. I've been collecting both since 2023 and never had an issue. But watch out if you work part time!! They will reduce your SS check if you make too much. I learned the hard way when I took a seasonal job at Home Depot and suddenly my SS check was smaller! Had nothing to do with the DIC though.

I want to add one more important point that might help with your planning. Since you're retiring at 63 and will be receiving reduced Social Security benefits (about 25% less than your full retirement age benefit), you might want to consider how long you expect to live and your overall financial picture. The break-even point for taking benefits early versus waiting until FRA is typically around age 78-80. But in your case, having the guaranteed DIC income of $1,750/month (which is a significant amount!) might make taking SS early more attractive since you have that steady income stream to supplement the reduced SS benefit. Just something to factor into your decision-making process. Also, don't forget that your SS benefits will be adjusted for cost of living increases each year, which can help offset some of the reduction over time.

As someone who works in benefits counseling, I want to emphasize how important it is to get official confirmation from SSA about your specific situation, even though everyone here is giving you correct general information. While DIC payments definitely don't count toward the earnings limit, there can sometimes be nuances based on your complete benefit picture. I'd also suggest documenting everything when you do speak with SSA - get names, dates, and reference numbers for any conversations about your benefits. This protects you if there are any discrepancies later. Your situation with DIC plus early retirement SS is actually fairly common among military survivors, so the SSA representatives should be familiar with it. One last tip: when you do start receiving SS, keep detailed records of any part-time work income throughout the year so you can easily track whether you're approaching that earnings limit.

I wanted to add something that might be helpful for your planning - make sure you understand how your reduced Social Security benefits will be calculated at 63. Since your full retirement age is 67, taking benefits at 63 means you'll receive about 75% of your full benefit amount (roughly a 25% reduction). This reduction is permanent, but as others mentioned, any money withheld due to exceeding the earnings limit will be recredited to you after you reach FRA. Also, I'd suggest running some scenarios with the SSA's online calculators or speaking with a financial planner who understands military survivor benefits. The combination of guaranteed DIC income plus reduced early SS benefits might actually work out better for your situation than waiting, especially considering your family health history concerns. Just make sure you factor in healthcare costs too - Medicare doesn't start until 65, so you'll need coverage for those two years between retiring at 63 and Medicare eligibility.