A recent federal report has revealed a troubling issue in how the Department of Veterans Affairs (VA) calculates monthly disability payments for veterans. According to the Office of Inspector General, one of the VA’s automated benefits calculators produced incorrect results, potentially leading to widespread underpayments for disabled veterans.

Faulty System May Have Shortchanged Veterans

The VA uses two different calculators to determine how much a veteran should receive in monthly disability compensation. One of these systems was meant to streamline the process by automatically filling in information. Unfortunately, this newer system was riddled with errors. The report confirmed that the automated calculator often generated the wrong payment amounts, especially in complex cases involving severe disabilities.

In contrast, the older calculator version produced accurate results. It required claims processors to input codes for each condition manually. The automated system was taken offline in February 2025. However, it may have already been used in claims dating back to at least 2017.

The Impact of Miscalculated Disability Benefits

The errors identified by the Inspector General were not based on specific veterans’ claims but on common disability scenarios. Still, the impact could be serious. According to the report, the underpayments ranged from around $132 to more than $4,100 per month. Some veterans could even have been overpaid by as much as $373 per month.

Payment errors were especially common in cases involving special monthly compensation, a benefit added to regular disability pay for veterans with more severe injuries or illnesses. This includes amputations, loss of vision or permanent disabilities that require help with daily tasks.

VA Response and Next Steps

VA officials acknowledged the problem and agreed with the watchdog’s recommendations. They have committed to fixing the calculation errors and are working on a testing plan to ensure accuracy moving forward.

What remains unclear is how many veterans were affected and over what period. Officials have not determined when the faulty calculator was first used, although the earliest documentation points to 2017. The VA issued guidance in October 2024 instructing claims processors to stop using the automated version, but it’s unknown how widely it was still in use at the time.

Advocates Call for VA to Take Action

Disability payments are often subject to changes in ratings and other bureaucratic processes, so adding technical glitches to the mix only creates more uncertainty and stress for veterans and their families. Veterans advocates are urging the VA to immediately reimburse veterans who were underpaid because of system errors. On the other hand, if a veteran was overpaid due to the VA’s mistake, they should not be penalized or required to repay the money. 

The calculator errors have also renewed concerns about the VA’s reliance on outdated or unreliable technology. Veterans should never have to wonder whether their benefits were calculated accurately.

How a Tampa Veterans Disability Attorney Can Help

For many veterans, figuring out whether their benefits have been correctly calculated is no easy task. The claims process is already complex, and mistakes like these can go unnoticed for years. If you are a veteran who receives disability compensation, it may be worth taking a closer look at your payments, especially if you have multiple service-connected conditions or receive special monthly compensation.

At David W. Magann, P.A., we work closely with veterans to ensure they get the benefits they deserve. If you believe there may have been a mistake in your disability payments, our Tampa veterans’ benefits attorneys are here to help. Contact us today to learn more.