Yes, you can work on TDIU in some situations. VA does not require you to be completely idle. The rule is that your service-connected disabilities must prevent you from securing and following a substantially gainful occupation. Work that is only marginal does not count against you. This guide explains the income limit VA uses, the "protected work environment" exception, how part-time and gig work are treated, and how to protect your benefit if you work.
The TDIU Income Limit: The Census Poverty Threshold
Under 38 CFR 4.16(a), marginal employment is not substantially gainful employment. Marginal employment "generally shall be deemed to exist" when your earned annual income does not exceed the poverty threshold for one person set by the U.S. Census Bureau. Earned income means money from work: wages, tips, and net earnings from self-employment. It does not include your VA compensation.
The figure most often used is the Census Bureau's weighted average threshold for one person (all ages). Recent figures from the Census Bureau's historical poverty threshold tables:
- 2025: $16,330
- 2024: $15,940
- 2023: $15,480
- 2022: $14,880
- 2021: $13,788
- 2020: $13,171
Source: U.S. Census Bureau, poverty thresholds by size of family (census.gov historical poverty threshold tables). The Census Bureau publishes each year's final thresholds after the year ends, usually in the fall of the following year, so the 2025 figure was released in September 2026 and the 2026 figure is not yet available. The threshold applies to the year in which the income was earned.
One detail: the Census tables also list separate one-person figures for people under 65 and 65 and older (for 2025, $16,750 and $15,440). Some Board of Veterans' Appeals decisions have used the under-65 figure. The difference is small, but if your earnings are close to the line, it matters, and a representative can check which figure your decision used.
Earning Under the Limit Is Not Automatic Approval
Staying under the threshold helps, but it is not the whole test. The Court of Appeals for Veterans Claims explained in Ray v. Wilkie, 31 Vet. App. 58 (2019), that "substantially gainful occupation" has two parts:
- An economic part: whether you can earn more than marginal income, outside of a protected environment, measured against the poverty threshold for one person.
- A non-economic part: whether your work history, education, skills, and training, together with your physical and mental abilities, allow you to get and keep that kind of work. The court listed mental factors such as memory, concentration, ability to adapt to change, handling workplace stress, getting along with coworkers, and demonstrating reliability and productivity.
So VA looks at the nature of the work and why jobs ended, not just the dollar amount. 38 CFR 4.16(a) says consideration "shall be given in all claims to the nature of the employment and the reason for termination."
Earning Over the Limit: The Protected Work Environment
Earnings above the threshold do not always end the inquiry. Under 4.16(a), marginal employment "may also be held to exist, on a facts found basis," when income exceeds the poverty threshold. The regulation gives examples: "employment in a protected environment such as a family business or sheltered workshop."
VA has never written a detailed definition of "protected environment." In Cantrell v. Shulkin, 28 Vet. App. 382 (2017), the court noted that gap, declined to defer to the Board's undefined approach, and said facts such as your job duties and the degree of accommodation may matter. In LaBruzza v. McDonough, 37 Vet. App. 111 (2024), the court described a protected work environment as a lower-income position that, because of your service-connected disabilities, is shielded in some respect from competition in the employment market. The court also said:
- The job does not have to be completely shielded from competition.
- Accommodations alone, or keeping a job despite impairments, are not enough by themselves.
- Income should be relatively low, but there is no bright-line dollar cutoff.
Examples that may fit, depending on the facts: a job in a relative's business that exists mainly because the family works around your limitations, a sheltered workshop, or a position where the employer tolerates absences, breaks, or supervision needs that a typical employer would not, and pays you less than the competitive rate. Employer statements describing these arrangements are strong evidence.
For how the courts have defined a protected work environment, and what a vocational report should document to meet that test, see TDIU case law every vocational report should address.
Part-Time, Gig, and Seasonal Work
VA does not have a set number of hours that is allowed. What matters is whether the work is substantially gainful and whether it shows you can hold a regular job.
- Part-time work. Part-time work that keeps annual earnings at or below the threshold is generally marginal. If you work fewer hours because of your service-connected conditions, document why.
- Gig and app-based work. Rideshare, delivery, and freelance work count as earned income. VA looks at your net earnings. Keep records of your hours, earnings, expenses, and days you could not work.
- Seasonal or odd jobs. VA's own benefit page describes odd jobs as marginal employment that does not count. Short, irregular jobs that end because of your symptoms support a TDIU claim when they are documented.
- Self-employment. Business income counts as earned income. See TDIU and self-employment for more.
- Working from home. Remote work follows the same rules. See working from home and TDIU.
Unpaid volunteer activity is not earned income, but VA may still look at what the activity shows about your abilities. Describe any volunteering accurately, including the limits and accommodations involved.
If You Already Receive TDIU and Start Working
Report work to VA. VA may send VA Form 21-4140 (Employment Questionnaire) asking you to verify your employment status. Answer it accurately and return it on time.
The rules also protect veterans who try to work. Under 38 CFR 3.343(c)(2), for TDIU ratings in effect after January 1, 1985, VA cannot reduce TDIU solely because you secure and follow substantially gainful employment unless you keep that employment for 12 consecutive months. Short breaks caused by your service-connected conditions do not count toward the 12 months. Any reduction also requires clear and convincing evidence of actual employability under 3.343(c)(1), and participation in vocational rehabilitation or training alone is not a reason to reduce.
Even so, you should talk to your representative before you take a job. Earnings above the threshold for a full year can end TDIU, and misreporting can create an overpayment.
Evidence That Shows Work Is Marginal
- Pay stubs, W-2s, 1099s, and tax returns showing annual earned income
- A statement from your employer describing accommodations, special treatment, reduced pay, or how the job differs from a typical position
- Records of missed days, early departures, and reduced hours tied to your service-connected conditions
- Medical records connecting your symptoms to your work limits
- A work history showing how prior jobs ended
- A vocational opinion explaining whether your work is competitive employment and what your limitations mean in the labor market
A vocational report looks at both parts of the Ray test. It reviews your work history, education, transferable skills, and documented limitations, and it explains whether any current work is marginal or protected. Our standard report is $1,599 and is delivered in 5–7 business days once we have both your records and the completed interview. Request a free case fit check to see if it fits your case.
Frequently Asked Questions
How much can I earn on TDIU in 2026?
VA generally treats earned income at or below the Census Bureau poverty threshold for one person as marginal. The most recent figure is $16,330 for 2025 ($15,940 for 2024). The 2026 figure will not be published until 2027.
Can I work part-time on TDIU?
Often, yes, if the work is marginal. VA has no fixed hour limit. It looks at your earnings, the nature of the job, and whether it shows you can hold a regular job.
What is a protected work environment?
It is a lower-income job that, because of your service-connected disabilities, is shielded in some way from normal competition, such as a family business or sheltered workshop (LaBruzza v. McDonough, 2024). Work there can be marginal even if you earn more than the threshold.
Does gig work like rideshare or delivery count?
Yes. Net earnings from gig and freelance work are earned income. Keep records of hours, earnings, expenses, and days you could not work because of your conditions.
Will VA take away TDIU if I try a full-time job?
VA cannot reduce TDIU solely for substantially gainful work unless you keep it for 12 consecutive months (38 CFR 3.343(c)(2)). You must still report the work, so talk to your representative first.
Last reviewed: September 2026.