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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.

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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!

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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:

  • 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.

NOTE:

  • Veterans may have to complete an employment questionnaire once a year for VA to continue to pay the IU benefit. This questionnaire verifies continued IU eligibility. The VA also verifies the Veteran's earned income with Social Security.

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How to Apply

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!

It is also 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 NOTE:

"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.

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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 of course an invitation is not required.

NOTE:

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

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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.

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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.

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FAQ

What is gainful employment?

  • 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."

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Can I be gainfully employed and keep IU?

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

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If gainfully employed, outside of a sheltered/protected environment. How long before I lose IU?

  • 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 Propose TDIU be revoked.

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If I hold gainful employment for over 12 months will I owe the VA money?

 

Can I be marginally employed and keep IU?

  • Yes.

 

What is marginal employment?

  • 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!

 

Will I lose IU if I participate in VR&E or use my GI Bill?

  • No.

 

Can I become Permanent and Total (P&T) if I'm IU?

  • 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).

 

What is earned income?

  • 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.)

 

Will income earned via the stock market disqualify me from IU?

  • 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.

 

Can my spouse's or household income disqualify me from TDIU?

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

 

Will I lose IU if I win the lottery?

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

 

Can I be 100% scheduler and TDIU at the same time?

  • Yes, if being TDIU make you eligible for SMC S. 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.

 

The VA website shows a claim for IU but I never put a claim in for it. What is going on?

  • 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.

 

Once I reach Social Security age will VA remove my IU?

  • No.

 

Can I apply for IU once I am over Social Security age?

  • Yes.

 

A claim for Unemployability popped up and I did not file for it, what's going on?

  • 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.

 

References

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