15.7. Schedule of Payment
a. Payment of the clothing allowance is made in a lump sum annually to Veterans when entitlement is established prior to August 1st, otherwise known as the anniversary date (anniversary dates are only August 1st). If entitlement and processing is completed
before August 1st of the benefit year, VBA will release the annual clothing allowance payment(s) September 1st - October 31st of the same benefit year. Current clothing allowance rates can be found at: https://www.va.gov/disability/compensation-rates/special-benefit-allowance-rates/
b. Veterans who are incarcerated during the clothing allowance year will have their payment prorated for each day in which the Veteran is incarcerated.
NOTE: The VETSNET system prorates automatically using VBA information (CFR 3.810(d)).
c. In order to establish an anniversary date, the Veteran will have a service connected disability prior to August 1st, prescribed and utilizing the qualifying prosthetic, orthopedic appliance, and/or skin medication. The Veteran can apply using VA Form 10-8678, Application for Annual Clothing Allowance, for that given year’s benefit up to 1 year from the established anniversary date. The clothing allowance benefit year spans from August 1st to July 31st of each calendar year.
Example: A Veteran receives a service-connected rating for arthritis, for which the Veteran is prescribed a rigid knee brace that causes irreparable damage to his or her pants on May 10, 2012. Since the anniversary date is August 1, 2012, the Veteran will
have until July 31, 2013 to apply for a clothing allowance for benefit year 2012.
d. If a Veteran establishes eligibility for the clothing allowance as of August 1st or later of any year, the Veteran is not entitled to any payment for that year. No amount is payable until the annual payment becomes due on the following August 1st . Likewise, a
partial refund is not required if the Veterans entitlement is terminated during a period after the annual clothing allowance is furnished.
Example: A Veteran is service-connected for an ankle condition and is prescribed an orthosis on September 10, 2012. The anniversary date is August 1, 2013. The Veteran has until July 31, 2014 to apply for the 2013 annual clothing allowance, but is not eligible to receive a clothing allowance for benefit year 2012 since the anniversary date falls after the August 1st deadline.