Can You Work while receiving TDIU? Understanding VA’s Employment Restrictions 

Posted by Berry Law on March 10, 2025 in TDIU

One of the most common questions Veterans ask about veterans TDIU benefits is whether they can work while receiving Total Disability Individual Unemployability (TDIU) compensation. While TDIU provides 100% disability pay, there are strict employment rules that determine whether a Veteran can continue receiving benefits. Understanding VA’s “substantial gainful employment” rules, as well as exceptions like sheltered work environments and marginal employment, can help Veterans navigate their options. At Berry Law, we help Veterans understand their TDIU VA benefits and protect their compensation. 

What Is Considered Substantial Gainful Employment? 

The VA defines substantial gainful employment (SGE) as work that provides earnings above the federal poverty threshold for a single person. If a Veteran is earning more than this amount, the VA may determine that they are employable and could terminate VA disability TDIU benefits. 

For 2025, the poverty threshold for one person is $15,650 per year, though this amount may change annually. If a Veteran earns more than this amount in a traditional work environment, they may no longer qualify for TDIU. 

What Types of Employment Are Allowed While Receiving TDIU? 

Although substantial gainful employment is not allowed, certain types of work do not disqualify a Veteran from receiving TDIU benefits. These include: 

• Marginal Employment – Veterans may work if their income remains below the federal poverty level. 

• Sheltered Employment – Work in a protected environment, such as a family business or non-competitive setting, where accommodations are made specifically for their disabilities. 

• Volunteer Work – Non-paid work does not impact 100% TDIU permanent and total benefits, but excessive volunteering may cause the VA to question a Veteran’s ability to work. 

If a Veteran is working in a sheltered or marginal employment setting, they should document their work conditions and submit supporting evidence to the VA. 

How the VA Reviews Employment for TDIU Recipients 

The VA periodically reviews TDIU VA benefits to make sure that Veterans still meet eligibility criteria. This can happen if: 

• The VA receives evidence that a Veteran has returned to work in a substantial capacity. 

• The Veteran reports earnings that exceed the poverty threshold. 

• The VA schedules a Compensation & Pension (C&P) exam to reassess medical conditions. 

Veterans who are working should be prepared to justify their employment situation and provide medical documentation if needed. 

Consequences of Working While Receiving TDIU 

If the VA determines that a Veteran is engaged in substantial gainful employment, the consequences may include: 

• Loss of TDIU benefits – Compensation may be reduced to the schedular rating level. 

• Overpayment Recoupment – If a Veteran receives benefits they were no longer eligible for, the VA may require them to repay the excess amount. 

• Possible Re-Evaluation – The VA may schedule medical re-evaluations to determine whether a Veteran’s disabilities have improved. 

If the VA threatens to revoke TDIU status due to employment, Veterans can appeal the decision or provide evidence that their work falls under an exception. 

How to Protect Your TDIU Benefits While Working 

Veterans who need supplemental income but still qualify for VA disability TDIU benefits should take precautions to protect their status: 

• Ensure Earnings Stay Below the Poverty Threshold – If working part-time, track earnings to remain below the annual limit. 

• Document Work Accommodations – Veterans in sheltered employment should obtain letters from employers describing their work conditions. 

• Regularly Review VA Correspondence – Stay updated on any VA requests for information regarding work status. 

Understanding VA’s employment restrictions for veterans TDIU benefits is essential to maintaining 100% TDIU permanent and total benefits. If you need assistance securing or protecting your TDIU status, Berry Law is here to help. 

Contact us today for a free case evaluation. 

Frequently Asked Questions (FAQs) 

1. Can I work part-time while receiving TDIU?

Yes, as long as earnings remain below the federal poverty threshold or the work qualifies as sheltered employment. 

2. Will volunteer work affect my TDIU benefits?

No, but excessive volunteering may prompt the VA to question your ability to work. 

3. What happens if I start earning above the poverty level?

The VA may re-evaluate your case and could revoke TDIU benefits. 

4. Can I apply for TDIU if I am still working?

Yes, but you must demonstrate that your work is marginal or sheltered employment. 

5. How do I challenge a VA decision to revoke my TDIU benefits?

You can appeal the decision by providing medical evidence and documentation of your work limitations. Contact Berry Law for assistance.