For many disabled veterans, Total Disability Individual Unemployability can be the difference between financial instability and long-term security. TDIU allows veterans who cannot work due to service-connected conditions to receive compensation at the 100% disability rate even if their combined VA rating is less than 100%.
As 2026 approaches, many veterans are asking an important question: Should you apply for TDIU in 2026, and how do income limits and VA rules affect that decision? Understanding eligibility requirements, income rules, and strategic considerations can help you decide whether now is the right time to apply.
What Is TDIU and Who Qualifies?
TDIU stands for total disability based on individual unemployment. It is a VA benefit created for veterans whose service-connected disabilities prevent them from maintaining substantially gainful employment. The focus is not on whether you are unemployed, but whether your disabilities make it impossible to earn above a certain income.
Eligibilities include:
- One service-connected disability rated at 60% or higher
- A combined rating of 70% or higher, with at least one disability rated at 40%
Veterans who do not meet these rating thresholds may still qualify under extraschedular TDIU if their disabilities clearly prevent them from working. In all cases, strong medical evidence is critical.
Income Limits and “Substantially Gainful Employment” in 2026
One of the most important factors in a TDIU claim is income. The VA generally considers employment to be “substantially gainful” if earnings exceed the federal poverty threshold for a single person. This is updated periodically, meaning income limits for TDIU can change from year to year.
Income rules to understand:
- Only earned income from employment counts toward TDIU limits
- Passive income, such as VA benefits, Social Security, retirement income, or investments, usually does not count
- Working above the poverty threshold may jeopardize eligibility
Exceptions to income limits:
- Marginal employment, such as part-time work with income below the poverty level
- Protected employment: including family businesses or jobs that make significant accommodations for disabilities
Because income rules can be complex, it’s important to review your work history and earnings carefully before applying.
Pros and Cons of Applying for TDIU in 2026
Potential benefits:
- Compensation paid at 100% disability rate
- Increased financial stability for veterans unable to work
- Access to additional VA benefits
Potential drawbacks:
- Ongoing income restrictions
- VA inspection of employment history and medical evidence
- The possibility that the VA may re-examine other aspects of your disability ratings
If you are already rated at 100% schedular or can realistically return to substantially gainful employment, TDIU may not be the best option.
Considerations Before Filing a TDIU Claim
Before applying for TDIU in 2026, veterans should consider several strategic factors:
- Medical documentation: Do your records clearly link your inability to work to service-connected disabilities?
- Employment capacity: Are your service-connected conditions truly preventing full-time, competitive work?
- Vocational evidence: Employment history, job rejections, and expert opinions can strengthen your claim
- Timing: Recent earnings, job changes, or upcoming medical evaluations may impact your application
Applying without strong supporting evidence can lead to delays or denials, making preparation essential.
Talk to Coskrey Law About Your TDIU Options
Deciding whether to apply for TDIU in 2026 requires a careful review of your income, disabilities, and long-term goals. Every veteran’s situation is different, and a strategic approach can make all the difference. Contact Coskrey Law today for a free consultation to discuss whether TDIU is the right option for you and how to move forward with confidence