If you’re a veteran receiving VA disability compensation, you might wonder whether you can work and continue to receive benefits. The short answer is yes, but the specifics depend on how your benefits are categorized, particularly whether you’re receiving standard disability compensation or benefits through Total Disability based on Individual Unemployability (TDIU). Understanding the differences is critical for protecting your benefits and planning your financial future.
Determining Eligibility for VA Pension Benefits
Veterans Pension benefits are designed to provide financial support to military veterans and their families who have limited income and assets. To qualify, a veteran must have received a discharge other than dishonorable and meet specific income and net worth thresholds set by Congress. Net worth includes most personal property (excluding a primary residence, a vehicle, and standard home furnishings) and also accounts for a spouse’s assets and income. In addition to financial requirements, a veteran must meet certain service criteria.
For example, those who served before September 8, 1980, must have completed at least 90 days of active duty with at least one day during a wartime period. Veterans who served after that date may need to have served for at least 24 months or the full period they were called to active duty, with similar wartime service conditions. Eligibility also depends on personal circumstances such as being age 65 or older, having a permanent and total disability, living in a nursing home due to disability, or receiving SSDI or SSI.
When it comes to work income, Veterans Pension benefits function similarly to other needs-based programs like Supplemental Security Income (SSI). Any earned income, including wages from a job, is considered countable and can reduce the amount of pension benefits received. The VA calculates pension eligibility based on a veteran’s annual family income and subtracts that from the maximum pension rate to determine the benefit amount. Certain expenses, like unreimbursed medical costs, can offset income and help veterans retain some benefits.
Similarly, SSI benefits are also affected by earned income, but the Social Security Administration allows for certain exclusions—such as disregarding the first $65 of earned income and half of any additional earnings—before reducing the SSI payment. Despite these allowances, substantial income from work can still lower or eliminate both SSI and VA pension benefits, so it’s important for recipients to report income changes and understand how their earnings might impact overall support.
Working While Receiving VA Disability Compensation
The Department of Veterans Affairs (VA) provides disability compensation to veterans with service-connected conditions that impact daily life or the ability to work. The VA assigns a disability rating between 0% and 100%, reflecting the severity of the condition.
If you’re receiving standard VA disability compensation, you can work full- or part-time without fear of losing your benefits. This type of disability compensation is different from programs like Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), which have strict income limits. For example, a veteran with a 40% rating for a back injury and PTSD can continue working in a civilian job and receive full monthly compensation from the VA. There are no earnings restrictions tied to this type of benefit.
In short, if you’re not receiving TDIU, your employment status and income will not affect your VA disability compensation.
What About TDIU?
Things are different for veterans who receive Total Disability based on Individual Unemployability (TDIU). TDIU is a special VA benefit awarded to veterans whose service-connected conditions prevent them from securing and maintaining substantially gainful employment, even if their disability rating is less than 100%.
- If you’re awarded TDIU, the VA considers you to be 100% disabled, even if your combined rating is lower.
- However, TDIU is contingent on unemployability. If you begin earning income at a level considered “substantially gainful,” you could risk losing your TDIU benefits.
Substantially gainful employment typically means earning more than the federal poverty threshold for one person (around $15,000 to $17,000; this varies by year and age).
That said, marginal employment—such as working part-time or in a sheltered environment (e.g., family business, special accommodations)—is generally not considered substantially gainful and may be allowed under TDIU.
When Working Could Affect Your Benefits: Individual Unemployability (TDIU)
While you can work with a VA disability rating, the situation changes if you receive TDIU benefits. TDIU is a benefit for veterans who can’t maintain substantially gainful employment due to service-connected disabilities. If you’re receiving TDIU, working full-time could disqualify you from this benefit.
To qualify for TDIU, you must meet one of the following criteria:
- A single service-connected disability rated at 60% or higher, or
- Two or more service-connected disabilities with at least one rated at 40% or higher and a combined rating of 70% or higher.
If you receive TDIU and begin working full-time, the VA may determine that you’re no longer unable to work, which may potentially reduce or terminate your compensation.
Vocational Rehabilitation and Employment (VR&E)
The VA’s VR&E program helps veterans with service-connected disabilities prepare for, find, and keep suitable jobs. If you’re interested in working but need assistance due to your disabilities, VR&E can provide support, including:
- Resume development and job search assistance
- Job training and education
- Workplace accommodations
- Self-employment support
To be eligible for VR&E, you must have a service-connected disability that impairs your ability to work and meet specific other criteria. Participation in VR&E is generally compatible with receiving VA disability compensation.
Need Assistance With VA Benefits?
If you’re uncertain how working might affect your VA disability benefits or need help navigating the VA system, our trusted attorneys at Kerr Robichaux & Carroll are here to assist you. Our experienced team can provide guidance tailored to your situation.
Contact us today by submitting a form online or calling our office at 503-255-9092 for a free case evaluation.