38 U.S.C. § 1503: Determinations with respect to annual income

donations from public or private relief or welfare organizations; payments under this chapter; such veteran’s just debts, the expenses of such veteran’s last illness, and the expenses of such veteran’s burial to the extent such expenses are not reimbursed under chapter 23 of this title; by a veteran for the last illness and burial of such veteran’s deceased spouse or child, or by the spouse of a living veteran or the surviving spouse of a deceased veteran for the last illness and burial of a child of such veteran; any accident (as defined by the Secretary), but the amount excluded under this subparagraph shall not exceed the greater of the fair market value or reasonable replacement value of the equipment or vehicle involved at the time immediately preceding the accident; any theft or loss (as defined by the Secretary), but the amount excluded under this subparagraph shall not exceed the greater of the fair market value or reasonable replacement value of the item or the amount of the money (including legal tender of the United States or of a foreign country) involved at the time immediately preceding the theft or loss; or any casualty loss (as defined by the Secretary), but the amount excluded under this subparagraph shall not exceed the greater of the fair market value or reasonable replacement value of the property involved at the time immediately preceding the casualty loss; profit realized from the disposition of real or personal property other than in the course of a business; amounts in joint accounts in banks and similar institutions acquired by reason of death of other joint owner; amounts equal to amounts paid by a veteran, veterans’ spouse, or surviving spouse or by or on behalf of a veteran’s child for unreimbursed medical expenses, to the extent that such amounts exceed 5 percent of the maximum annual rate of pension (including any amount of increased pension payable on account of family members but not including any amount of pension payable because a person is in need of regular aid and attendance or because a person is permanently house­bound) payable to such veteran, surviving spouse, or child; in the case of a veteran or surviving spouse pursuing a course of education or vocational rehabilitation or training, amounts equal to amounts paid by such veteran or surviving spouse for such course of education or vocational rehabilitation or training, including (A) amounts paid for tuition, fees, books, and materials, and (B) in the case of such a veteran or surviving spouse in need of regular aid and attendance, unreimbursed amounts paid for unusual transportation expenses in connection with the pursuit of such course of education or vocational rehabilitation or training, to the extent that such amounts exceed the reasonable expenses which would have been incurred by a nondisabled person using an appropriate means of transportation (public transportation, if reasonably available); the lowest amount of gross income for which an income tax return is required under section 6012(a) of the Internal Revenue Code of 1986, to be filed by an individual who is not married (as determined under section 7703 of such Code), is not a surviving spouse (as defined in section 2(a) of such Code), and is not a head of household (as defined in section 2(b) of such Code); and if the child is pursuing a course of postsecondary education or vocational rehabilitation or training, the amount paid by such child for such course of education or vocational rehabilitation or training, including the amount paid for tuition, fees, books, and materials; payment of a monetary amount of up to $5,000 to a veteran from a State or municipality that is paid as a veterans’ benefit due to injury or disease; and lump-sum proceeds of any life insurance policy on a veteran, for purposes of pension under subchapter III of this chapter. Where a fraction of a dollar is involved, annual income shall be fixed at the next lower dollar. Except as otherwise provided herein, this Act [amending this section and sections 502, 506, 521, 541, 542, 612, and 3104 [now 1502, 1506, 1521, 1541, 1542, 1712, and 5304] of this title and enacting provisions set out as a note under section 1521 of this title ] shall take effect on January 1, 1965 . The amendment to paragraph (6) of section 503 [now 1503], title 38, United States Code, shall not apply to any individual receiving pension on December 31, 1964 , under chapter 15 of said title, or subsequently determined entitled to such pension for said day, until his contributions have been recouped under the provision of that paragraph in effect on December 31, 1964 .”