What TDIU is
If your service-connected conditions stop you from holding a regular job, you can be paid at the 100% rate even if your combined schedular rating is only 60-90%. This is Total Disability based on Individual Unemployability (TDIU), governed by 38 CFR § 4.16.
Two paths to qualify
Schedular TDIU (§ 4.16(a)), automatic consideration if:
- One service-connected condition rated 60% or higher, OR
- Two or more conditions combining to 70% or higher, with at least one rated 40% or higher
Extraschedular TDIU (§ 4.16(b)), for veterans below the schedular thresholds whose conditions still prevent employment. Requires VA Director of Compensation Service approval. Harder, but possible.
"Substantially gainful employment" test
Your earnings must be below the federal poverty threshold (~$15,060/yr for 2024). Sheltered or odd-job income doesn't count against you, a "marginal employment" exception exists.
What to file
- VA Form 21-8940. Veteran's Application for Increased Compensation Based on Unemployability. This is the core form.
- VA Form 21-4192. Request for Employment Information, sent to your last employer.
- Personal statement describing why your conditions prevent work, be specific about what tasks you can't do, frequency of flare-ups, missed days.
- Medical evidence showing the impact of conditions on work capacity. Vocational expert opinions can help.
TDIU and other benefits
- Pays the same monthly rate as 100% schedular ($3,938.58 a month for a single veteran in 2026, effective December 1, 2025).
- May qualify you for Chapter 35 DEA for dependents.
- Counts toward CHAMPVA eligibility.
- Does not count toward SMC entitlement the same way 100% schedular does, important nuance.
What hurts a TDIU claim
- Working full-time at gainful wages (obvious).
- Refusing offered VA Vocational Rehab without good cause.
- Medical records that say "patient is stable, working."