TDIU — Total Disability Individual Unemployability

Key concept. TDIU is one of the most valuable VA benefits and one of the most underutilized. If you cannot work because of your service-connected conditions, TDIU pays you at the 100% RATE even if your schedular combined rating is less than 100%. As of 2026, TDIU pays approximately $3,938.58/month.

Eligibility

You qualify for TDIU under 38 CFR § 4.16(a) if:

• You have ONE service-connected condition rated 60% or higher, OR
• You have TWO OR MORE service-connected conditions with a combined rating of 70% or higher, with at least one condition rated 40% or higher,
• AND your service-connected conditions prevent you from securing or maintaining “substantially gainful employment.”

Extra-schedular TDIU (38 CFR § 4.16(b))

If you don’t meet the schedular percentages but your service-connected conditions still prevent employment, you can apply for extra-schedular TDIU. This requires VA to refer the case to the Director of Compensation Service for review. Harder to win, but possible.

What “substantially gainful employment” means

• Earning above the federal poverty threshold ($15,060 for a single person in 2026)
• “Marginal employment” — earning below the threshold or in a protected work environment (family business, etc.) — does NOT disqualify you
• If you currently earn above the threshold but with extensive accommodations or in a job that requires minimal output, document the accommodations. You may still qualify.

How to file

• VA Form 21-8940 (Veteran’s Application for Increased Compensation Based on Unemployability)
• Include detailed employment history, dates of employment, reasons for leaving each job
• Include statements from former employers, supervisors, coworkers describing your limitations
• Include a vocational expert assessment if possible (similar to SSDI vocational expert reports)
• Include medical opinions stating that the service-connected conditions render you unable to work

Strategy

TDIU is the single highest-yield claim available to most rated veterans whose conditions impair work. The difference between, say, 70% schedular and TDIU is approximately $2,130/month — over $25,000/year, every year. Many veterans rated 70% who are not working file TDIU and win it. If you fit the criteria, do not leave this on the table.

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