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Total Disability Individual Unemployability (TDIU/IU)

Veterans who are unable to be gainfully employed due to one or more service-connected disabilities and who meet the below eligibility requirements may apply for TDIU.

If the VA determines that a Veteran may be eligible for TDIU, they will send the Veteran a letter inviting them to apply for TDIU, but the Veteran does not have to wait to be invited to apply - any Veteran that believes they may be eligible for TDIU should apply for the benefit. Alternatively - if you don't want to file for TDIU you do not have to, and not filing will not hurt your other claims.

TDIU pays the Veteran at the 100% disability rate regardless of their actual Combined rating.

If the Veteran's TDIU is based upon a singular issue such as a Mental disorder the grant may entitle the Veteran to SMC S.

Unlike Social Security, the VA is NOT allowed to consider the Veteran's age when considering grants of TDIU. However, unlike Social Security the VA can only consider disabilities that are service-connected.

IMPORTANT NOTE:

  • The VA WILL initiate a claim for increase on the condition(s) claimed as the basis of the the Veteran's unemployability. Which CAN result in a reductions - if appropriate!

Eligibility Requirements

  • At least one service-connected disability rated at 60% or more disabling, or two or more service-connected disabilities with at least one rated at 40% or more disabling and a Combined rating of 70% or more, AND

  • You cannot hold down a steady job that supports you financially (known as substantially gainful employment) because of your service-connected disabilit(ies). Odd jobs (marginal employment) do NOT count.

IMPORTANT NOTES:

  • The following ARE considered as ONE DISABILITY:

    • Disabilities of one OR both upper extremities;

    • Disabilities of one OR both lower extremities;

    • Disabilities affecting a single body system (e.g. Digestive, Respiratory, Endocrine, etc.);

    • Disabilities incurred as a prisoner of war; or

    • Disabilities that occurred from one incident (vehicle crash, IED, etc.).

  • Veterans may apply for TDIU WITHOUT meeting the minimum rating requirements!

  • In certain cases such as the Veteran needing to be in the hospital often it is possible to qualify at a lower disability rating.

Applying

File a claim on online or use a 21-526EZ for disability compensation. You will want to claim Unemployability, as well as increases for the service connected condition(s) that make you unemployable. When you file, be sure to provide evidence (supporting documents like a doctor’s report or medical test results) showing that your disability prevents you from holding down a steady job.

In addition, you MUST fill out and submit VA Form 21-8940 with your claim!

IMPORTANT NOTES:

  • You CAN claim conditions which are NOT currently service-connected as the basis of your unemployability, so long as they ARE listed on the 21-526EZ and have not been previously denied. If they have been previously denied, then you will need to Appeal those previous denials. But you CAN file that appeal at the same time as your claim for TDIU is running!

  • On the VA Form 21-8940 block 18 where it says:

"LIST ALL YOUR EMPLOYMENT INCLUDING SELF-EMPLOYMENT FOR THE LAST FIVE YEARS YOU WORKED"

That does NOT mean the last 5 years from today! That means the last 5 years of working history. So if your last job was in Jan 2020, you MUST provide jobs you worked at from Jan 2015 to Jan 2020!

If say, you did not have a job from Jan 2015 to Sep 2015 then state you were unemployed during that period of time! If you don't and just leave that period unanswered, you may delay your claim as the VA will have to reach out to you for an explanation.

SPECIAL NOTE:

  • Since a claim for TDIU is considered a claim for increase, if you have been previously denied - you do NOT need to file a Supplemental claim for TDIU.

Additional evidence in support

Consider submitting these with your claim:

VA Form 21-4192

It is strongly encouraged that you have YOUR FORMER EMPLOYER(S) complete VA Form 21-4192. Doing so will speed up your claim greatly. If your former employers do NOT respond, the claim will eventually move forward without their input, but the VA may make several attempts to get them to complete the form which could delay the claim several months.

IMPORTANT NOTES:

  • Do NOT complete the form yourself! UNLESS, you were self-employed!

  • If your former employer's business is no longer in business you should note this on your IU application.

Buddy and personal statements

You can and should submit Personal and Buddy statements attesting to how your service-connected disabilit(ies) prevent you from maintaining gainful employment or how your employment should be considered protected/sheltered.

Medical records

Recent medical records (within a year) that show the severity of your condition can be very helpful.

After the Application

Once you have submitted your claim the VA WILL:

  • If you did not have your former employer(s) complete the VA Form 21-4192, the VA will send that form out at least twice - to get them to complete it;

  • If you ever applied for Veterans Readiness and Employment (VR&E), the VA will request for those records;

  • If you ever applied for Social Security Disability, the VA will request these records;

  • Request medical records (as appropriate); and

  • Evaluate the condition(s) which make up the basis of your claim. Additionally, the examiner will also provide a medical opinion(s) as to your ability to do work.

Effective Dates

TDIU has some extra considerations when it comes to assigning an Effective date. Effective dates are important because they determine when your pay starts.

If the Veteran initiates a claim for TDIU within a year of them Statutorily qualifying for TDIU, the effective date can go back up to a year of when they qualified. Also know, if a rater suspects a Veteran may qualify for TDIU they will invite the Veteran to submit a claim for it, though an invitation is not required to file for TDIU.

IMPORTANT NOTE:

  • The effective date for TDIU CANNOT be earlier than the effective date of service-connection for the underlying disability or disabilities.

After Grant of TDIU

So you've been granted TDIU! Know that you ARE allowed to work, so long as you:

IMPORTANT NOTES:

  • The poverty threshold limit considers ONLY the Veteran's earned income and does NOT increase based upon the size of their household!

  • Income from sources outside of employment are NOT counted against your income limit.

  • Examples of sheltered or protected environments include:

    • Family business;

    • Sheltered workshops.

Earning over the poverty threshold

If you earn over the poverty threshold the VA will send you a Employment questionnaire and a letter stating that the Social Security Administration has informed the VA that you were over the poverty threshold for the past year.

IMPORTANT NOTE:

  • If you filed taxes jointly with a spouse and your household income is greater than poverty threshold limits, then the Social Security Administration MAY alert the VA that you earned over the poverty threshold. Fear not as you will just need to explain to the VA that this is your spouse's income WITH copies of their W2(s). Do NOT be the donkey that ignores the letter or says 'I haven't worked VA!'. This WILL result in the VA removing TDIU!

I want to KEEP TDIU

If you were gainfully employed, for a period of time, but were ultimately unable to maintain this employment, then that is perfectly fine. Unless this employment is in its nature irregular or seasonal.

What to do:

  1. Complete the Employment questionnaire.

  2. Submit a Personal statement explaining your employment, why you quit (if applicable), or reasons why you believe the work should be considered protected/sheltered. You can also include evidence in the form of a statement from the employer stating any concessions made that allow you to work there. Generally speaking, to be considered sheltered/protected environments these concessions would need to be extra-ordinary and present a burden to the employer.

Ultimately, the rater will make a judgement call on a case-by-case basis as to if they believe your gainful employment is considered sheltered or protected.

I want to LOSE TDIU

If you no longer want to remain on TDIU then you can ignore the letter and the VA will eventually sever the grant of TDIU and any other entitlements associated with it.

Social Security Disability Insurance (SSDI)

Veterans CAN be awarded SSDI and TDIU simultaneously!

Veterans who have Enough work credits and meet other Eligibility requirements may Apply for Social Security Disability Insurance (SSDI).

Unlike the VA, the Social Security Administration (SSA) is allowed to consider disabilities that are NOT service connected! However, SSA is allowed to take the Veteran's age into consideration.

As such, Veterans may find it an easier or harder process. It is recommended that the Veteran seek out an experienced SSA disability lawyer to help them through the process, especially if they need to appeal.

Benefit Amount

The benefit amount the Veteran gets from SSDI varies. The more a Veteran earned during their working years the larger their benefit will be.

NOTES:

  • Veterans who are Permanent & Total (P&T) are granted Expedited processing of their SSDI claim.

  • Those who do not have enough work credits for SSDI. May be eligible for Supplemental Security Insurance (SSI). However, SSI counts VA disability payments against your eligibility, which makes a Veteran who is granted TDIU ineligible for SSI!

Frequently Asked Questions

    • The VA MAY reevaluate your condition(s) to determine the current severity of your condition(s). Which may result in Proposals to sever TDIU (and other applicable entitlements) as well as reductions to the condition(s) that make up the basis of the original TDIU grant.

    IMPORTANT NOTE:

    • If you do NOT return the Employment questionnaire, the VA will simply sever TDIU (and other applicable entitlements) and will NOT reevaluate/reduce the condition(s) which make up the basis of your TDIU grant.

  • One that provides annual income that exceeds the poverty threshold for one person, irrespective of the number of hours or days that the Veteran actually works and without regard to the Veteran’s annual earned income prior to his having been awarded a 100% rating based on individual unemployability — such employment constitutes, as a matter of law, a substantially gainful occupation and thus “actual employability".

    • Yes, but only if the Veteran works in a sheltered/protected environment.

    • After 12 continuous months of gainful employment, the VA will send you a letter asking for you to explain your gainful employment and what if any concessions your employer is making on your behalf. If the VA is not satisfied with your response or you fail to respond; the VA will sever TDIU.

  • No.

    • Yes.

    • Marginal employment means the Veteran's annual earned income does NOT exceed the amount established by the U.S. Department of Commerce, Bureau of the Census, as the poverty threshold for one person.

    • Marginal employment may also be held to exist, on a facts-found basis (includes but is not limited to employment in a protected environment such as a family business or sheltered workshop), when earned annual income exceeds the poverty threshold.

    Click HERE to see the current poverty threshold.

    IMPORTANT NOTE:

    • The income limit considers ONLY the Veteran's earned income and does NOT increase based upon the size of their household!

  • No.

    • Yes, if the VA determines that the disabilities that were the basis of the Veteran's IU claim have become static (unlikely to ever improve).

    • Earned income is wages you get from working (wages, salaries, tips, commissions, self-employment), but does NOT include passive income (stocks, interest, bonds, income producing rental properties, etc.).

    • It depends, if you are gainfully working for a brokerage firm then yes. However, if you simply own stocks and sell some or make money off of dividends then you are safe.

    • No, only the Veteran's income is considered!

    • No. Lottery winnings would be considered "unearned income" and not count towards the earned income limit.

    • Yes, if being TDIU makes you eligible for Special Monthly Compensation (SMC). You will retain your TDIU status as it pays you a higher benefit than being 100% scheduler.

    • Additionally, if TDIU provided you with an earlier effective date than your 100% scheduler rating. You will be left as being TDIU as the back pay provided by the TDIU is technically a greater benefit than just being 100% scheduler.

    • No, it will be kept as active in your records. HOWEVER, the VA will NOT care about your income anymore UNLESS your entitlement to TDIU is being used as a basis for an award of Special Monthly Compensation (SMC).

    • This means the rater believes you qualify for IU based upon the evidence in your file. If you haven't you should receive a letter inviting you to submit a claim for IU. If you do not want to file, that is perfectly fine! It will not be held against you.

  • No.

  • Yes.

    • In short, the VA should be sending you an invite soon asking for you to apply. Again, you do not need to file for TDIU - unless you want to.

    • Yes, technically an award for TDIU just changes the rate at which you are paid. It does NOT actually change your Combined disability evaluation.

    • No.

    • The purpose of this information is to determine if the job(s) you held could be determined to be marginal or gainful employment. The purpose of which is to see if you may be entitled to an earlier effective date. The VA does NOT care if your last job you made high 6 figures!

References