When the VA grants TDIU (total disability based on individual unemployability) under 38 CFR 4.16, the decision letter will state that the veteran is considered totally and permanently disabled. This is why you'll often see TDIU described as coming with P&T (permanent and total) status, even if the veteran's combined schedular rating is below 100%, such as 70% P&T with TDIU.
P&T status does not exempt a veteran from income reporting obligations tied to TDIU. TDIU is meant for veterans who cannot maintain substantially gainful employment because of service-connected conditions, so if a veteran's earned income rises above the poverty threshold, the VA can question whether the veteran is still unemployable in that sense. Marginal employment in a protected or sheltered environment is generally not counted against a veteran, but there is no unlimited exception, and recent CAVC case law has reinforced that sustained income over the threshold can trigger review. Because the VA now receives income data through information-sharing with the Social Security Administration, veterans generally do not need to proactively self-report income changes, though they should still respond promptly to any VA inquiry.
Official 2026 VA monthly compensation, including the 2.8% COLA increase.
Dependent add-ons start at a 30% rating. Child-only and dependent-parent rates: see the full 2026 pay chart.
| Rating | Monthly (2026, incl. 2.8% COLA) |
|---|---|
| 10% | $180.42 |
| 20% | $356.66 |
| 30% | $552.47 |
| 40% | $795.84 |
| 50% | $1,132.90 |
| 60% | $1,435.02 |
| 70% | $1,808.45 |
| 80% | $2,102.15 |
| 90% | $2,362.30 |
| 100% | $3,938.58 |
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Analyze my claim free →The TDIU income threshold is based solely on the veteran's own earned income, not household size and not a spouse's income. Being TDIU also does not automatically become moot if a veteran later reaches 100% schedular, since TDIU can still open the door to ancillary benefits like SMC-S (special monthly compensation for being housebound-level disabled based on a single 100% rating plus additional disabilities), which schedular 100% alone may not provide.
On effective dates, a veteran can be granted an effective date up to one year prior to the claim filing date if they can show they factually met the TDIU criteria during that year, consistent with the general effective-date rules under 38 CFR 3.400 and 38 USC 5110.
In the appealed VA decisions in VetAid's library, TDIU appeals were vacated or remanded 54% of the time and effective-date appeals 44% of the time — these are outcomes among appealed decisions specifically, not odds for a first-time claim, and appealed cases are not a random sample of all filings.
If you currently have TDIU and your income has changed, gather your pay records and respond to any VA request promptly rather than waiting, since failing to respond can risk your rating.
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