Original Message

The simple answer is no.  You can receive both VA Disability Compensation and SS, but only the VA Disability Compensation is tax free.  The complicated answer about taxes on your SS (to include Social Security Disability Insurance - SSDI) is "it depends."  If you file as single, 50% of your SS or SSDI is taxed as income if the total of all your earned and unearned income (excluding VA Disability Compensation - which is tax free) is between $25K and $34K.  If that total is more than $34K, 85% of your SS or SSDI is taxed as income.

If you're "Married and Filing Jointly," those numbers increase to $32K to $44K for the 50% taxed as income, and anything over $44K gets 85% of your SS/SSDI taxed as income.  

BTW, it's not a sliding scale.  $1.00 over the limit gets you to 85% every time!