What if I exceed the limit for one month?

TDIU eligibility is evaluated over a rolling 12-month period, not a single month — one higher-earning month generally doesn't trigger review on its own, but sustained earnings above the threshold across a full year typically does.

Does the threshold change every year?

Yes, it's tied to the federal poverty guideline for one person and updates annually, so it's worth checking the current figure rather than relying on a number from a prior year.

What happens if my income review shows I exceeded the threshold?

The VA will typically request more information about the nature of the employment before making any decision, giving you the opportunity to explain sheltered or marginal employment status if it applies.

TDIU & Unemployability

2025-05-16· 4 min read

TDIU Income Limits Explained

TDIU eligibility hinges on the federal poverty threshold for marginal employment. Here's the current number, exactly what counts toward it, and how to avoid triggering an unwanted review.

By VA Benefits Help Guide Editorial Team · Updated 2026-06-01

Quick answer

TDIU recipients can earn up to the federal poverty threshold for one person annually without risking their benefit. Income above that threshold in non-sheltered employment for 12 consecutive months generally triggers a review of continued TDIU eligibility.

The TDIU income limit moves every year alongside the federal poverty threshold, and it's one of the most consequential numbers a veteran on TDIU needs to track. Knowing the current figure — and precisely what counts toward it — is what keeps a part-time job or side income from accidentally triggering an unwanted review.

The Current Federal Poverty Threshold

The federal poverty threshold for one person updates annually, released by the Census Bureau. Checking the current year's exact figure before accepting new work or a raise is worth the few minutes it takes, since it's this specific number your earnings get compared against.

What Counts Toward the Limit

W-2 wages from any employer
Net self-employment income, after deductible business expenses
1099 contractor income, calculated net rather than gross
Tips and bonuses received as part of employment

Want the complete picture of how employment interacts with TDIU, not just the income number?

See the Full TDIU Employment Rules

What Doesn't Count Toward the Limit

VA disability compensation itself
Social Security Disability or SSI benefits
Investment income, dividends, and capital gains
Rental income, in most typical circumstances
A spouse's income, which is not factored into your individual TDIU threshold

The Sheltered Employment Exception

Even earnings above the poverty threshold don't automatically disqualify TDIU if the work qualifies as sheltered or marginal employment — work performed in a protected environment specifically accommodating your disability. The dollar amount alone isn't the whole picture; the nature of the work environment matters just as much.

Common mistakes to avoid

Including spouse's income in the calculation.
Forgetting to deduct legitimate business expenses from self-employment income before comparing it to the threshold.
Assuming a single month above the threshold automatically triggers a reduction.

Frequently asked questions

Conclusion

Know the current threshold, track your annual earnings honestly, and stay accurate on Form 21-4140 — the consequences of unreported income are far worse than simply staying within the limit in the first place.