Will a VCF Award Affect My Existing Disability Payments?

Filing a VCF claim should not affect ongoing recovery or entitlement of existing payments from Federal or State Workers’ Compensation, Social Security Disability, or any other similar program. However, the lost earnings portion of a VCF award may be reduced by the amount of any benefits paid by Federal, State, or local governments if related to the 9/11-related physical condition. In most cases, even if the benefits amount is greater than the lost earnings portion of a VCF award, a non-economic award is still available.

What Does the Victim Compensation Fund (VCF) Cover?

VCF benefits cover several economic and non-economic damages for victims. The most common include:

• Pain and Suffering – Also known as non-economic losses, the VCF can provide financial benefits to help ease the pain and suffering victims continue to suffer after the attacks. This also accounts for the mental anguish and loss of enjoyment of life associated with a 9/11 physical condition(s).
• Lost Wages or Reduced Earning Capacity – Many 9/11 victims may have lost wages or reduced earning capacity caused directly by the injuries they sustained during the attacks. The VCF may compensate for this lost income.
• Replacement Services – Compensation may be awarded for services the individual can no longer perform, such as household maintenance or childcare, which now require outside assistance.
• Medical Expenses – VCF may reimburse medical expenses related to care or treatment that took place before the individual was certified by the WTCHP and became eligible for medical coverage. This includes copayments associated with surgeries, physical therapy, psychological services, medication, prescriptions, etc. Extensive medical and payment documentation is required to qualify, as well as a minimum threshold of $5,000 in qualifying costs.
• Death Benefits – Families that have lost a loved one due to the attacks can receive benefits to cover funeral costs, compensate living family members, and provide lost future earnings to the victim’s family.

Who Is Eligible for a VCF Award?

Eligibility requirements for VCF benefits are largely straightforward:

1. You or your loved one must have spent enough hours within any of the crash sites and exposure zones or while taking part in the debris removal process between 9/11/2001 and 5/30/2002.
2. You or a deceased loved one must have at least one qualifying physical condition that is formally connected to 9/11 toxic dust exposure.
3. Supporting documentation and any key evidence must be provided to support your presence in the disaster area, connect your condition(s) to 9/11, and outline your losses.

Every victim’s case is different, so take these requirements outlined above as a general framework. Securing a VCF award is a demanding process that requires claimants to not only definitively prove the direct link between their injury or loss and the 9/11 attacks but also properly submit the claim under the Fund’s strict guidelines.

How is a VCF Award Calculated?

The VCF determines each award by adding non‑economic losses (like pain and suffering) to economic losses (such as lost wages, medical bills, and replacement services), then deducting collateral offsets (any compensation you’ve already received, like Social Security disability or Workers’ Comp).

Non‑economic awards are based on the severity of your condition and its impact on your daily life. The VCF awards up to an absolute maximum of $340,000 for multiple cancers and severe lung diseases, $250,000 for most single cancers, and up to $90,000 for certain lung diseases and non-melanoma skin cancers. Respiratory conditions typically range from $10,000 to $20,000. Economic awards cover past and future income losses, as well as the loss of job benefits, out-of-pocket medical expenses, and services like household help or funeral costs.

Can You Still Claim SSDI Benefits if You Received a VCF Award?

Yes. You may receive both Social Security Disability Insurance (SSDI) benefits and a VCF award. One does not disqualify you from the other. However, if the SSDI benefits are related to the same 9/11-certified condition, they may reduce the economic portion of your VCF award.

Similarly, this applies if you are receiving workers’ compensation benefits related to your 9/11-certified condition. These are known as collateral offsets.

Do You Need to Report a VCF Award on Your Taxes?

It depends. The answer differs between tax reporting requirements and income-based government benefit programs.

Federal Taxes

For federal income tax purposes, Victim Compensation Fund (VCF) awards are not considered taxable income. The Internal Revenue Service excludes payments made to victims of terrorist attacks, including both compensation to living claimants and death benefits to families of deceased victims. This exclusion is reflected in federal law and explained in IRS Publication 3920.

State Taxes

Most states follow the IRS definition of gross income, which means VCF awards are typically exempt from state taxation as well. However, several states have addressed 9/11-related compensation specifically and, in some cases, provide even broader relief.

• New York excludes VCF awards from state, city, and Yonkers income taxes. It also forgives back taxes for deceased victims retroactive to the date of injury.
• New Jersey exempts 9/11-related compensation from state income tax and provides similar retroactive relief in death cases.
• Pennsylvania excludes personal injury and disability-related payments from income tax when those payments are not received as wages.

Tax rules in other states may vary. Our firm works with experienced New York and New Jersey tax advisors who can confirm your eligibility for these exemptions and help you access any available relief. We can arrange a consultation at no cost to you.

Income-Based Government Benefits

Even though a VCF award is not taxable, it may still be treated as income or a resource for purposes of certain government benefit programs. Programs such as Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), and Medicaid each have their own rules for determining eligibility. Depending on how a VCF payment is structured or received, it may affect benefits or require planning through a special needs trust or other protective arrangement. Our firm provides consultations to our 9/11 clients on income-based benefits planning, including how VCF awards and related payments may impact eligibility for these programs.

Other Related Programs

Social Security Disability Insurance (SSDI) and qualified disaster relief payments related to 9/11 conditions are generally exempt from taxation under federal law. The World Trade Center Health Program provides medical treatment and monitoring benefits that are not taxable and are not treated as income for public assistance purposes.

When Should You Speak with a Lawyer About a VCF Award?

You should consult a lawyer as early as possible, preferably well before filing your initial claim. The VCF process is governed by detailed regulations, strict deadlines, waiver issues, and complex evidentiary requirements. An experienced attorney can help ensure that your claim is properly submitted and fully supported from the outset.

Calculate All Damages Accurately

VCF awards could include compensation for lost earnings, loss of earning capacity, out-of-pocket expenses, pain and suffering, and replacement services. A lawyer will identify all eligible losses, calculate them accurately, and present them in a way that maximizes your recovery. This ensures that no compensable category is overlooked.

Gather Supporting Documents and Evidence

VCF awards are not given out lightly. Evidence and other supporting documents will mean the difference between getting your award and getting denied. Your lawyer will help you gather all of the evidence needed and file your claim on your behalf with the goal of reducing the risk of denial and delays.

Help You Navigate the Claims Process

While it is possible to file a claim without legal representation, doing so may expose you to errors or omissions that can delay or jeopardize your award. An attorney will handle the process on your behalf, from registration and submission to follow-up requests and compliance with deadlines. This is particularly important for claimants with multiple conditions, unusual exposure histories, or overlapping government benefits.

Appeals and Reconsideration of Denied or Undervalued Claims

If your claim is denied or results in an award that does not fully reflect your losses, you have the right to request a hearing or seek an amendment. A lawyer can evaluate the decision, identify errors, and submit a detailed challenge supported by additional evidence or legal argument. We have successfully identified and appealed countless unfavorable and/or inaccurate determinations and recovered millions in additional compensation for our clients through this process.

Help You After Your Reward

Even after your claim is approved, circumstances may change. If your condition worsens, new conditions are diagnosed, or you incur additional losses, you may be entitled to file an amendment up until the fund closes in October of 2090. A lawyer will advise you on when and how to seek additional compensation and will manage that process for you.

A Lawyer Can Help if You Have Questions About the VCF

Getting a VCF award does not have to be a confusing or difficult process. Our lawyers here at Pitta & Baione LLP have helped our clients recover over $600 million in verdicts and settlements. If you have any questions at all about your VCF award, do not hesitate to contact us today, risk-free.