Can You Work and Still Get TDIU Benefits?

Many disabled veterans worry that working at all will prevent them from qualifying for Total Disability based on Individual Unemployability (TDIU) benefits. It's a valid concern, but the answer isn’t always black and white. In some cases, you can work and still receive TDIU. The key is understanding what the VA considers “substantially gainful employment” and how that standard applies to your situation.

At Sarphie Law in Louisiana, we help veterans across the country pursue TDIU and other VA disability benefits. If you're struggling to earn a living due to service-connected conditions, this blog will explain when employment is allowed, how the VA defines unemployability, and what you need to prove to get approved.

What Is TDIU?

Total Disability based on Individual Unemployability (TDIU) allows veterans to receive VA compensation at the 100% disability rate even if their combined service-connected rating is less than 100%. This benefit exists for veterans who are unable to maintain substantially gainful employment due to their service-connected disabilities.

To qualify for TDIU under the VA’s schedular criteria, you must have:

• One service-connected disability rated at 60% or more, or
• Two or more service-connected disabilities, with one rated at least 40% and a combined rating of 70% or more

If your ratings do not meet these thresholds, you may still qualify for TDIU on an extraschedular basis if your disability significantly interferes with your ability to work.

What Is Considered “Substantially Gainful Employment”?

The VA defines substantially gainful employment as employment that is more than marginal and provides an annual income above the federal poverty threshold. This standard is not just about income; it’s also about whether your job matches your abilities and education and whether you are truly able to compete in the open labor market.

Here are some examples of what may or may not count as substantially gainful employment:

• Full-time job with consistent income: Typically disqualifies a veteran from receiving TDIU unless the job is considered protected.
• Part-time work below the poverty threshold: Often considered marginal employment, which may still qualify for TDIU.
• Family-owned business or self-employment with low or no profit: Could still be eligible for TDIU, depending on the nature of the work and your role.

Protected or sheltered employment, such as a position created to accommodate your disabilities that would not be offered in a competitive setting, may also allow for TDIU approval, even if income is above the poverty line.

Do You Have to Be Rated at 100% to Get TDIU?

No. This is a common misconception. TDIU is specifically designed for veterans who are not rated at 100% but are still unable to work because of their service-connected disabilities. That means you can have a 70% or 80% combined rating and still receive compensation as if you were 100% disabled, as long as you meet the unemployability criteria.

The main difference is how you qualify:

• A 100% schedular rating is based on the severity of the disabilities according to VA guidelines.
• TDIU is based on how those disabilities affect your ability to work, regardless of whether the VA considers them severe enough to equal a 100% rating.

How to Prove You Cannot Work

The VA will not automatically approve TDIU just because your ratings meet the minimum. You still need to show that your service-connected conditions prevent you from securing or keeping substantially gainful employment.

Helpful evidence includes:

• Medical records documenting your limitations
• Statements from doctors explaining why you cannot work
• Vocational assessments from experts who evaluate your work capacity
• Employment records showing job loss, reduced hours, or failed accommodations
• Personal statements or buddy letters describing your day-to-day struggles

The stronger your documentation, the better your chances of receiving TDIU, especially if you're working a marginal job or recently left the workforce due to your condition.

Can You Keep Working While Applying for TDIU?

You can apply for TDIU while still working, but you need to be cautious. The type of job, your income, and the accommodations made for your disability will all be evaluated. If your work is considered marginal or protected, it may not disqualify you.

If you are unsure whether your current job could jeopardize your claim, consult with an attorney before filing. Every case is different, and the VA often takes a very narrow view of what qualifies as unemployability.

Why Legal Help Makes a Difference

Many veterans are denied TDIU because they do not fully explain how their disabilities impact their ability to work. Others are denied because they didn’t submit enough medical documentation or because the VA made an incorrect determination based on outdated records.

At Sarphie Law, we help veterans prepare strong TDIU claims with the right medical support, vocational documentation, and legal arguments. We also assist with appeals if your claim was denied, even if it happened years ago.

You Served Your Country. Let Us Serve You.

If your service-connected disabilities prevent you from holding a steady job, you may be entitled to full VA compensation, even if your rating is less than 100% and even if you are still working in a limited capacity. Understanding the rules around TDIU and employment is critical, and you do not have to figure it out alone.

Contact Sarphie Law today for a free consultation. We will evaluate your case, explain your options, and help you pursue the benefits you earned through your service.