It appears that VA disability compensation received by either the student or the student’s spouse needs to be reported on FAFSA, question 45.h. as untaxed income.
Veterans noneducation benefits, such as Disability, Death Pension, or Dependency & Indemnity Compensation (DIC) and/or VA Educational Work-Study allowances.
Department of Labor reporting rules and requirements cannot be used to determine Department of Education requirements for FAFSA reporting.