What Is TDIU

TDIU is a Department of Veterans Affairs benefit that allows veterans with service-connected disabilities who are unable to secure substantially gainful employment (a job that pays above the poverty threshold) and meet certain criteria to receive disability compensation benefits equal to a 100% rating (even if their combined disability rating does not reach a schedular 100%). 

There are two types of TDIU Criteria referred to as Scheduler and Extra-Schedular.

Scheduler Criteria

  1. The veteran must have an other-than-dishonorable discharge

  2. The veteran has one service-connected disability rating at least 60%

    OR

3. The veteran has more than one service-connected disability,
with one disability rating at least 40%, and a combined rating of at least 70%

  • John, single no dependents, has an honorable discharge and has a service-connected disability rating of 60% for PTSD awarded in December 2019.

    Since that date, he has been unable to work in any capacity due the following symptoms associated with the PTSD and their resulting employment barrier: due to racing thoughts, hypervigilance, flashbacks, mood swings, and anxiety attacks he is unable to sustain focus and concentration to complete even simple and routine tasks 30% of the time, he would be absent from work at least one day per week due these symptoms, and he would be unable to interact appropriately with coworkers, supervisors and the general public.

    If awarded TDIU, his estimated monthly VA benefit amount would go from $1319.65 to $3621.95 (Veteran alone, no dependents).  If found to be TDIU eligible as of December 2019, the VA would pay John retroactive benefits estimated to be $82,882.80 (3 years in this example).

    If John hired a lawyer to assist him in applying for TDIU, he could potentially owe the lawyer up to 33% of the retroactive benefits which in this example would equate to $27,351.24.

  • Jane, married with one child, has a general other than honorable discharge and has a service-connected disability ratings of 40% for PTSD and 30% for a TBI both awarded in December 2019.

    Since that date, she has been unable to work in any capacity due the following symptoms associated with the PTSD and TBI and their resulting employment barriers: due to racing thoughts, hypervigilance, flashbacks, mood swings, and anxiety attacks she is unable to sustain focus and concentration to complete even simple and routine tasks 20% of the time, she would be absent from work at least three days per month due these symptoms, and she would be unable to interact appropriately with supervisors and the general public.

    If awarded TDIU, her estimated monthly VA benefit amount would go from $1907.06 to $3971.78 (Veteran with 1 child and spouse).  If found to be TDIU eligible as of December 2019, the VA would pay Jane retroactive benefits estimated to be $74,329.92 (3 years in this example). 

    If Jane hired a lawyer to assist her in applying for TDIU, she could potentially owe the lawyer up to 33% of the retroactive benefits which in this example would equate to $24,528.87.

Extra-Scheduler Criteria

(for those Veterans who do not meet the Scheduler TDIU Disability required % levels)

  1. The veteran must have an other-than-dishonorable discharge

  2. VA regulation 38 C.F.R. § 3.321(b)(1) lists the following criteria the Veteran must meet for extraschedular TDIU.

a)       The disability(ies) must be service-connected

b)      The Veteran must have an exceptional or unusual disability picture with such related factors as marked interference with employment or frequent periods of hospitalization as to render impractical the application of regular standards (Scheduler TDIU)

  • Pat, single no dependents with an honorable discharge, was wounded in combat and received a disability rating of 50% in December 2015.

    Pat is not eligible for Scheduler TDIU because he only has one disability rated at less than 60%; however, Pat has been unable to maintain substantially gainful employment since December 2015 because he is often hospitalized for extended periods of time due to staph infections at the wound site.

    Pat is unable to keep a job because he misses too many days of work while hospitalized and therefore, Pat may be eligible for Extra-Scheduler TDIU.  To receive Extra-Schedular TDIU benefits, Pat will need to prove that his service-connected disability is the cause of his frequent hospitalizations for staph infections and that those frequent hospitalizations prevent him from obtaining substantially gainful employment.

    Pat was able to gather his medical records that clearly documents the etiology of his staph infections is the combat wound and the amount of time he has been hospitalized due to the staph infections since December 2015.  Pat gathered his employment records and termination letters from several employers and then obtained a Vocational Expert evaluation that concluded he was unemployable given the frequency and duration in which he would be hospitalized (for staph infections associated with his combat wound).

    If awarded TDIU, his estimated monthly VA benefit amount would go from $1041.82 to $3621.95 (Veteran alone, no dependents).  If found to be TDIU eligible as of December 2019, the VA would pay Pat retroactive benefits estimated to be $92,884.68 (3 years in this example). 

    If Pat hired a lawyer to assist him in applying for TDIU, he could potentially owe the lawyer up to 33% of the retroactive benefits which in this example would equate to $30,651.94.