Normally, if you want to receive VA disability benefits at the highest rate, you must have an individual or combined disability schedular rating of at least 100 percent. However, there is an exception to this rule: Total Disability based on Individual Unemployability (TDIU). If you qualify for TDIU, you can receive VA disability benefits at the 100 percent rate, even if your disability schedular rating is under 100. TDIU is a special program that has several conditions and limitations, so it’s important you talk to an attorney to assess your options.
What Is a Schedular Rating in VA Disability?
Schedular ratings are percentage-based ratings that the VA uses to describe degrees of disability. The VA uses these schedular ratings to determine the amount of VA benefits applicants are entitled to. The VA has schedular ratings for a wide range of physical and mental conditions. The higher the schedular rating of a given disability, the greater the extent of impairment. Most VA schedular ratings for disabilities are found in Part 4 of Title 38 of the Code of Federal Regulations.
Schedular ratings fall between 0 and 100 percent, where 100 percent represents total disability. For example, the disability rating for an amputation of the dominant hand is 70 percent. If a veteran has multiple disabilities, they receive a combined disability rating based on each individual disability rating. If a veteran’s single or combined schedular ratings equal 100 percent, they will receive VA disability benefits at the maximum rate.
What Is TDIU (Total Disability Based on Individual Unemployability)?
TDIU is a special type of benefit that allows you to receive the maximum VA benefit for total disability, even if your schedular disability rating is not 100 percent. This means that as a TDIU recipient, you would receive benefits at the same rate as a veteran with a 100 percent schedular disability rating. Veterans can receive TDIU if their disability ratings and work activity meet specific criteria, which we will cover below.
Key Differences Between Schedular Ratings and TDIU
You can think of schedular ratings and TDIU as different ways to evaluate someone for total disability. In terms of actual compensation, neither option is superior. A 100 percent schedular rating and a TDIU rating will both result in receiving the maximum VA disability benefits. The two most important differences come down to eligibility criteria and work restrictions.
Qualifying Disability Criteria
For a veteran to qualify for 100 percent schedular disability, their condition(s) must simply meet the criteria for a total disability rating of 100 percent. In contrast, you do not need a schedular disability rating of 100 percent to qualify for TDIU. To be eligible for TDIU, you must either:
- Have a single service-connected condition with a disability of at least 60 percent, or
- Have two or more service-connected conditions with a combined disability rating of 70 percent, and at least one condition has a disability rating of 40 percent or higher.
For example, say you had one disability with a rating of 50 percent and another disability with a rating of 40 percent. In this case, you would have a combined disability rating of 70 percent. Since one rating is at least 40 percent, you would qualify for TDIU. You can calculate your combined disability rating using the VA’s combined ratings table to see if your combination meets the 70/40 percent criteria.
Even if your disability does not meet the schedular criteria, you may still be eligible for TDIU through extraschedular evaluations. You can qualify for extraschedular TDIU if your disability is atypical enough that standard schedular evaluations are insufficient to capture its severity.
Work Restrictions
Veterans on 100 percent schedular disability have no income or work restrictions. They can work as much as they want and earn income without affecting the amount of benefits they receive.
However, TDIU requires you to be unable to engage in substantial gainful activity (SGA). TDIU income limits are based on the federal poverty level as defined by the Social Security Administration. If you make more than the SGA income limits, you will likely be ineligible for TDIU benefits.
TDIU does not mean you cannot work at all — you just cannot earn more than the federal poverty level. If you work in a limited capacity and your earnings do not exceed the poverty threshold, you can still receive TDIU.
Are TDIU Benefits Permanent?
No, TDIU is not automatically permanent. TDIU can be permanent if the VA decides that your condition is permanent and total (or P&T). The VA might declare your condition P&T if it is reasonably certain that your condition will never improve. There are a few ways to tell if the VA has declared that your TDIU benefits are permanent.
- You can check your VA benefits summary verification. At the end of the letter, look for text that states whether you are permanently and totally disabled. If you are, there should be a YES next to the text.
- Your VA disability rating decision letter can also tell you whether your condition is permanent and total. Look for language stating that you no longer need Routine Future Examinations (RFE) or language referring to Chapter 365 DEA benefits.
Can the VA Reduce TDIU Benefits?
Yes, the VA can reduce TDIU benefits in some circumstances. Below are the most common reasons for a reduction in TDIU benefits:
- Your income increases, and you start to earn more than the SSA’s annual income limit for substantial gainful activity.
- You fail to fill out the VA’s Employment Questionnaire Form 21-4140. The VA may request Form 21-4140 if Social Security data indicates your income has changed.
- Your disability improves so that you no longer fall within the TDIU schedular criteria (e.g., your disability rating for your single condition changes from 70 percent to 50 percent after it gets better).
Contact VetLaw for Help with Your VA Disability Claim Today
If you would like to speak to a VA disability benefits attorney about TDIU benefits or VA schedular ratings, contact VetLaw online or call (336) 355-8387 today. Consultations are free, so you have nothing to lose by getting in touch.
