100% VA Disability vs. TDIU: What’s the Difference?
A 100% schedular VA disability rating and Total Disability based on Individual Unemployability (TDIU) are two different ways you might be able to secure the maximum payout for your VA disability benefits. However, the way you qualify for each of these options differs substantially. A 100% schedular rating means you are living with a service-connected disability that is severe enough that it qualifies as fully disabled. TDIU differs in that it allows you to get the same compensation as a 100% disability even if your rating doesn’t actually meet that threshold.
The difference matters because TDIU includes employment considerations that generally don’t apply to a schedular 100% rating. Our attorneys can help you understand the difference between these options and answer your questions if your claim has been denied.
What Is a 100% Schedular VA Disability Rating?
A 100% schedular VA disability rating means that you have a single service-connected disability that qualifies for a 100% rating. Alternatively, it can also mean that you’ve got multiple service-connected disabilities that combine to 100% under the VA’s rating rules.
The most straightforward path to a 100% rating comes through a single disability. VA’s Schedule for Rating Disabilities provides criteria for evaluating different medical conditions.
The second route involves multiple disabilities. You may have several service-connected conditions that VA rates separately, such as a mental health disorder, back disability, migraines, knee condition, and tinnitus.
The next step is for the VA to combine those disabilities into a single rating, but this process isn’t as simple as adding all the percentages together. While it’s natural to assume having one disability rated at 70% and another rated at 30% would be enough to get a total rating of 100%, that’s not how it works. While the second and subsequent diagnoses will increase the overall rating, moving from a 90% combined rating to 100% can be difficult.
It’s also helpful to understand what a 100% rating means for you. For example, your rating doesn’t depend on a finding that you can’t maintain substantially gainful employment. In other words, you might be able to continue working while receiving compensation at the 100% rate, depending on the circumstances.
What Is TDIU?
TDIU allows the VA to compensate you at the 100% disability rate, even when your overall rating is less than 100%. Your underlying schedular rating does not change to 100% simply because the VA grants you TDIU, but you do get the maximum benefits available.
For example, you might have a combined schedular rating of 70% or 90%. If those service-connected disabilities prevent substantially gainful employment and you otherwise qualify for TDIU, the VA can pay you at the same basic compensation rate as a veteran with a 100% rating.
TDIU can provide a path to total compensation even if the VA’s combined-rating formula leaves you below a 100% rating. However, you’ll have to show that your service-connected disabilities effectively prevent you from maintaining substantially gainful work.
What Are the Rating Requirements for TDIU?
VA generally requires you to meet specific schedular percentage thresholds before it grants TDIU under its standard criteria. You generally qualify if you have one service-connected disability rated at 60% or higher, or multiple disabilities with a combined rating of at least 70% and at least one disability rated at 40% or higher.
Of course, meeting this percentage threshold doesn’t automatically entitle you to TDIU. You must still establish that your service-connected disabilities prevent substantially gainful employment, which is key to securing maximum benefits without a 100% rating.
Can You Work With a 100% VA Rating or TDIU?
You can generally work while receiving a 100% schedular VA disability rating because the VA doesn’t base this rating on your ability to earn a living. TDIU is different because you’ll only qualify if you can show an inability to secure substantially gainful employment due to your service-connected disabilities.
If you receive a 100% schedular rating, earning a substantial income generally won’t be a problem, since that isn’t a factor the VA typically considers. However, the VA could schedule an examination, and if it shows medical improvement, your benefits may be lowered. The same can’t be said for TDIU, which focuses heavily on your employability.
Marginal employment can include employment in which your earned annual income does not exceed the applicable poverty threshold. In some circumstances, employment may also qualify as marginal even if earnings exceed that amount when you work in a protected environment, such as certain family businesses or sheltered workplaces.
The circumstances of your employment also matter. A veteran who receives extensive accommodations, performs substantially reduced responsibilities, or remains employed only because an employer tolerates limitations that would ordinarily result in termination may present a different situation from a veteran performing competitive full-time work without special accommodations.
Does TDIU Pay the Same Amount as a 100% Schedular Rating?
TDIU generally pays the same basic monthly disability compensation rate as a 100% schedular VA rating. The difference lies mainly in the legal basis for the payment, not the basic 100% compensation rate.
Additional circumstances can affect the actual amount you receive. Dependents can increase monthly compensation, and certain severe disabilities may qualify a veteran for Special Monthly Compensation (SMC) beyond the ordinary 100% rate.
Are 100% Schedular Ratings and TDIU Automatically Permanent?
Neither a 100% schedular rating nor TDIU is guaranteed to last forever. The VA can separately determine whether your total disability qualifies as permanent and total, often called P&T.
A permanent and total designation generally means it’s likely that your total impairment will last for the rest of your life. In situations where the decision makers decide improvement remains possible, they may not consider the rating permanent even while you receive the maximum benefits allowed.
It’s also possible to see your benefits reduced, although you have rights while that process plays out. In other words, the VA generally can’t simply lower a protected rating or terminate your TDIU without meeting certain criteria first.
Which Is Better: 100% Schedular Disability or TDIU?
A 100% schedular rating generally provides more employment flexibility because entitlement doesn’t depend on an inability to maintain substantially gainful work. However, TDIU can provide the same basic 100% compensation rate when your disability is rated at less than 100%, so each option can be ideal in certain situations.
You also don’t have to treat the two theories as mutually exclusive. Depending on your claim, VA may need to consider both your base ratings and the possibility of TDIU when you file a claim. The same is true on appeal, as you might have a viable case for both.
Frequently Asked Questions
Is TDIU the same as a 100% VA disability rating?
No. TDIU pays at the 100% rate, but your underlying schedular disability rating can remain below 100%. TDIU is based on your inability to maintain substantially gainful employment because of service-connected disabilities.
Can you receive TDIU with a 70% VA rating?
Yes, depending on your individual ratings and how your disabilities affect your ability to work. A combined 70% rating can meet the schedular threshold if at least one qualifying disability is rated at 40% or higher.
Can you get TDIU with a 90% rating?
Yes. A 90% combined rating can support TDIU if your service-connected disabilities prevent substantially gainful employment and you satisfy the applicable requirements.
Can VA take away TDIU if you start working?
Substantially gainful employment can affect TDIU eligibility, but returning to work doesn’t automatically mean you are ineligible for benefits.
How Can Our Firm Help With a 100% VA Disability or TDIU Claim?
Understanding the difference between a 100% schedular rating and TDIU is important, given that you’ll only qualify through one of the two options. While the claims process can be complicated, the good news is that you have an opportunity to appeal a denied claim.
What’s more, the appeal is where you can rely on the support of an experienced veterans’ disability attorney. Our firm can review your denial letter and help you understand your options. What’s more, you also have the right to appeal if your claim was accepted, but you didn’t get the maximum available benefits.
Discuss Your Disability Claim with Gang & Associates
Having your disability claim denied can be devastating, especially for veterans who have given so much to this country. As distressing as this can be, it’s important to remember you may still have a path forward. At Gang & Associates, we can help you appeal a denial or even challenge your rating if you believe it is too low.
Let our team use our experience to help you get the best possible rating. Contact us as soon as possible for a confidential consultation with our team.