Total Disability based on Individual Unemployability (TDIU) is governed by 38 CFR 4.16. It is meant for veterans whose service-connected conditions prevent them from securing or following substantially gainful employment. The regulation draws a distinction between substantially gainful employment and marginal employment. Marginal employment generally means work that produces annual earned income that does not exceed the amount established by the U.S. Census Bureau as the poverty threshold for one person, and it is not counted against you for TDIU purposes. Income at or below that federal poverty guideline is treated as a marker of marginal, not substantially gainful, work, even if you are earning it in a regular job rather than a sheltered or family-owned setting.
If your earnings rise above that poverty threshold, it does not automatically mean your TDIU will be terminated, but it can trigger a closer look. The VA may ask you to complete VA Form 21-4140 (Employment Questionnaire), which TDIU recipients are typically required to submit annually, or it may request additional information about the nature of the work — hours, accommodations, whether it is in a protected or sheltered environment, and whether you are actually able to sustain it given your service-connected impairments. Employment that is inconsistent, requires significant accommodation, or is in a family business or sheltered workshop can still be considered marginal even above the income threshold, but that determination is fact-specific and made by a rating decision, not automatically.
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 →Before VA reduces or terminates TDIU, due process protections under 38 CFR 3.343 and 3.105(e) generally apply, meaning you should receive a proposed reduction letter and an opportunity to respond and submit evidence before any final action is taken. You are not automatically cut off the moment income crosses the poverty line; the VA is supposed to evaluate whether the work is truly substantially gainful.
Because outcomes vary heavily based on the type of work, consistency of income, and how well documented your limitations are, it helps to keep records showing accommodations, missed work, or reduced hours due to your condition. If you receive a request for the 21-4140 or a proposed reduction, respond promptly with a detailed statement and any supporting evidence from your employer about the marginal or accommodated nature of the work rather than letting the deadline pass.
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