Wage Benefit Overview
How It Works
- Amount: Equal to 50% of the average weekly wage in Virginia’s private, non-farm sector, as calculated annually by the Virginia Employment Commission (VEC).
- Payment: Made in monthly installments to a third party (Conservator) for the benefit of the admitted claimant.
- Duration: From age 18 through age 65.
- Use: For the admitted claimant’s support and expenses not otherwise reimbursed by the Program.
Setting Up Payments
- Six Months Before 18th Birthday: Contact the Program to start the process.
- Conservator Required: A court must determine the admitted claimant is legally incapacitated and appoint a Conservator.
- Bank Account: Must be in the Conservator’s name, in trust for the admitted claimant, and used only for their benefit.
Taxes & Other Benefits
- Taxable: Considered “loss of earnings” and reported to the IRS and Virginia Department of Taxation (Form 1099).
- No Impact on Program Benefits: Other Program benefits are not reduced.
- Possible Impact on Other Benefits: May affect Social Security or other government benefits—families should seek legal advice.
Responsibilities
Program
- Determines benefit amount annually.
- Issues monthly payments and tax reporting.
Parents/Guardians
- Secure legal and tax advice.
- Complete all legal steps for Conservatorship and payment setup.>/li>
- Ensure funds are used solely for the claimant’s benefit.
Forms
Hidden - Do Not Delete
Wage Benefit Inquiry
Wage Benefit Agreement
Wage Benefit Information
Information
Disclaimer: All information on this website is intended for general informational purposes only and should not be considered legally binding, legal advice, nor substitute for obtaining legal advice from competent legal counsel. Although reasonable efforts are made to keep information on this site accurate, no guarantee is made as to its accuracy.