Understanding Individual Unemployability (IU)

The official term for this benefit is Total Disability based on Individual Unemployability (TDIU). It’s intended for veterans who:

• Have one service-connected disability rated at 60% or higher, or
• Have two or more service-connected disabilities, with at least one rated at 40% or more and a combined rating of 70% or more
• Are unable to maintain substantially gainful employment due to these service-connected conditions

This means that if your disabilities prevent you from working, even though your rating is less than 100%, you could still be paid at the 100% rate.

What Counts as Substantially Gainful Employment?

The VA defines substantially gainful employment as work that:

• Provides earnings above the poverty level
• Is not considered marginal, occasional, or protected employment
• Is full-time or consistent part-time work

If your only income is from odd jobs, or if your employer accommodates your disabilities in ways not typical in a competitive job market, you may still qualify for IU.

Evidence Needed to Qualify

To support your claim for IU, you’ll need to provide:

• Medical evidence showing how your disabilities impact your ability to work
• Employment history, including any attempts at working that failed due to your condition
• Statements from employers or medical professionals, if available, explaining why you can’t maintain employment

The VA may also request you to complete VA Form 21-8940, the Veteran’s Application for Increased Compensation Based on Unemployability.

Can You Work While Receiving IU?

Generally, veterans approved for IU cannot earn above the poverty threshold through employment. However, marginal or sheltered employment (like working for a family member who makes accommodations) may still be allowed.