To thank you for your service, the United States offers multiple tax breaks for disabled veterans. How do tax breaks for disabled veterans work? Tax benefits for disabled veterans aren't usually applied as a tax credit or tax deduction on your federal income tax return. Instead, they're typically spread out over different areas and may work in different ways. Here are the qualifications for each and how they may apply to your current situation. As you look at how to take advantage of the available options, follow our guide to ensure you're getting the benefits you deserve.