What Are the New TDIU Income Limits in 2026?

The new poverty threshold is $16,330, according to recent figures released by the U.S. Census Bureau on September 15, 2026 (based on 2025 data). This figure is significant to many veterans because it is used to calculate the amount of income a TDIU recipient can earn in a year and still receive their TDIU benefits from the Department of Veterans Affairs (VA).

This article will give a complete breakdown of what this number means, including where it comes from and how it applies to veterans receiving total disability based on individual unemployability (TDIU).

Key points of this article include:

• While veterans can work while receiving TDIU, they have to make less than the yearly federal poverty threshold to maintain eligibility for those benefits.
• VA draws its TDIU income limits from numbers released by the U.S. Census Bureau, not those released by the Department of Health and Human Services (HHS).
• If a TDIU recipient is employed in a “protected work environment,” they may be able to earn more than this threshold and still keep their TDIU benefits.

Watch CCK Law Partners Emma Peterson and Christine Clemens discuss what the federal poverty threshold means for TDIU recipients:

How Does This Federal Poverty Threshold Apply to TDIU?

Contrary to popular belief, veterans can work while receiving benefits for total disability based on individual unemployability (TDIU). However, that work must count as “marginal employment,” which VA defines as earning less than the federal income poverty threshold for one person (or in a protected work environment).

In other words, a veteran can work and keep their TDIU benefits as long as that work provides income of less than this federal poverty threshold, which is $16,330 as of September 15, 2026.

What Happens If a Veteran with TDIU Makes More than the Poverty Threshold?

If a TDIU recipient’s employment income exceeds these TDIU income limits for 12 months or longer, VA will generally notice when the Social Security Administration (SSA) wage match shows the veteran’s earnings are over the federal poverty threshold for one year.

At that point, VA may then issue the veteran a copy of VA Form 21-4140 (Employment Questionnaire). This form allows VA to gather more information on the veteran’s employment situation before potentially acting to revoke their TDIU benefits.

“Underreporting income is highly discouraged,” says Christine Clemens, partner at CCK Law. “VA often verifies earnings through SSA IRS income reports. If you are underreporting or otherwise have the wrong numbers in there, VA will typically find out.”

Can I Make More Than This Income Limit and Still Receive TDIU?

Yes, veterans may be able to earn income exceeding the federal poverty line and still keep their TDIU benefits, if their income comes from a “protected work environment.”

“If your earnings exceed the poverty threshold, you can still be considered unable to secure and follow substantially gainful employment if that job you’re working is sheltered,” says Emma Peterson, partner at CCK Law.

A protected or sheltered work environment is the other primary form of marginal employment (i.e., employment that is not “substantially gainful,” which means TDIU recipients are not barred from seeking it).

VA regulations do not explicitly define what a protected work environment is, and cases are often examined on an individual basis to determine whether they qualify as protected or sheltered. Functionally, however, VA often determines a workplace’s “protected” status based on whether a disabled veteran is granted certain accommodations without which they would not be able to work there.

Watch CCK Law Partner Maura Black break down what counts as a “protected work environment” for TDIU:

Is the TDIU Poverty Threshold Based on Census Bureau Data or HHS Guidelines?

VA’s TDIU income limits are drawn from the U.S. Census Bureau’s data, not from the HHS guidelines. Though both release an updated yearly poverty threshold, VA’s adjudicator manual (M21-1) specifically says the following:

“Substantially gainful employment is … earnings exceeding the amount established by the U.S. Department of Commerce, U.S. Census Bureau, as the poverty threshold for one person.”

Which of the Census Bureau’s Poverty Thresholds Apply to TDIU?

While the Census Bureau provides different thresholds based on the number of family members, VA’s phrase “for one person” means veterans should not include family members in their calculation of whether they meet this threshold.

This is different than when calculating VA compensation, which does increase for dependents if a veteran’s rating is over 30 percent. The poverty threshold limitation for VA TDIU claims is based on “one person” regardless of their family size.

Which of the Census Bureau’s “One Person” Poverty Thresholds Should Be Used for TDIU?

“The Census Bureau actually provides three different numbers for one person: an overall number, an under 65 category, and an over 65 category,” says Christine Clemens. “CCK Law uses [one person (unrelated individual)], which is the first number in that Census Bureau table.”

Many sources use the “Under 65” number. This is wrong.

• According to 38 CFR 4.19, “Age may not be considered as a factor in evaluating service-connected disability.”
• Furthermore, in the past, VA used to publish annual weighted average poverty threshold figures in the Federal Register Notice for Poverty Threshold. These announcements consistently described the number as “the weighted average poverty threshold established … for one person (unrelated individual).”

Watch CCK Law Partners Emma Peterson and Jenna Zellmer cover when veterans can work part-time while on TDIU:

How Can You Protect Your TDIU Benefits?

If you are concerned about how this poverty threshold could affect your TDIU benefits, here are a few tips to keep in mind:

• As long as you earn less income than the $16,330 figure for a single person, your TDIU benefits should be unaffected. Also keep an eye on this number, since it changes yearly.
• Look out for any correspondence from VA regarding your TDIU status, and be prepared to answer any questions or fill out any necessary forms VA may send your way inquiring about your employment.
• If VA incorrect proposes to revoke TDIU benefits, consider consulting a VA-accredited attorney for guidance on how to protect your benefits.

Frequently Asked Questions

What happens if I earn more than the new poverty threshold while on TDIU?

Earning more than the poverty threshold does not automatically end TDIU. Instead, if VA discovers a TDIU recipient has earned above this threshold for 12 consecutive months, it generally sends a notice proposing to reduce or end TDIU, along with a Form 21-4140 (Employment Questionnaire). A veteran generally has 60 days to respond to this notice with evidence, such as proof the work happened in a protected environment, before VA acts on the proposal (see 38 CFR § 3.105(e)).

Will my current TDIU rating be reviewed now that the 2025 threshold is out?

Publishing a new poverty threshold does not by itself trigger a review of an existing TDIU rating. Additionally, VA no longer requires TDIU recipients to file an annual employment questionnaire, since it now relies on a wage match with the Social Security Administration to flag earnings that may exceed the threshold. A review is more likely to start from that wage match, a scheduled reexamination, or income a veteran reports directly, rather than from the threshold update alone.

What’s the difference between the poverty threshold and the poverty guideline?

The poverty threshold comes from the U.S. Census Bureau and is the figure 38 CFR § 4.16(a) and VA’s M21-1 manual use to evaluate TDIU income. On the other hand, the poverty guideline, often called the federal poverty level, comes from the U.S. Department of Health and Human Services (HHS) and is a simplified figure used mainly for programs such as Medicaid and the Supplemental Nutrition Assistance Program. The two figures are usually close but not identical, and VA’s TDIU rules point only to the Census Bureau threshold.

Does the poverty threshold change if I have dependents?

No. For TDIU, VA compares a veteran’s own earned income to the poverty threshold for one person, no matter how many dependents the veteran has. That differs from monthly VA disability compensation, which can increase for a veteran rated over 30 percent who has a spouse, child, or dependent parent.

Does the new threshold apply retroactively to income already earned in 2025?

Not retroactively in a punishing sense. The Census Bureau finalizes each calendar year’s threshold about nine months after that year ends, so the $16,330 figure released in September 2026 simply supplies the number VA needed all along to judge income veterans earned during 2025. VA generally applies the threshold that matches the year the income was earned, not the threshold in effect on the date VA reviews the claim.