Free Consultation • Available 24/7
VA regulations use the Census poverty threshold for one person when determining whether employment is generally considered marginal.
The U.S. Census Bureau has published its poverty thresholds for calendar year 2025. The weighted-average threshold for one unrelated individual is $16,330. That number matters to Veterans receiving total disability based on individual unemployability, commonly called TDIU, because VA regulations use the Census poverty threshold for one person when determining whether employment is generally considered marginal.
The table became available on September 15, 2026, but the figure corresponds to income earned during 2025. It is not a new limit on income earned in 2026.
The threshold is an important reference point, but it is not a complete test of TDIU eligibility. A Veteran may work while receiving TDIU. Earning an income above $16,330 does not automatically require VA to end the benefit. The amount earned, the conditions of the job, the length of employment, and the evidence showing whether the work is substantially gainful can all affect the analysis.
The Main Points
TDIU allows VA to compensate an eligible Veteran at the 100 percent rate when service-connected conditions prevent that Veteran from securing or following substantially gainful employment. The underlying schedular disability rating does not change simply because VA grants TDIU.
The central issue is not whether the Veteran performs any work. It is whether the employment is substantially gainful or only marginal.
Under 38 C.F.R. § 4.16, employment is generally marginal when a Veteran’s annual earned income does not exceed the Census poverty threshold for one person. The regulation also recognizes that a job may be marginal based on the facts of the case even when earnings are higher, including work in a protected environment such as a family business or sheltered workshop.
For that reason, a pay stub alone may not resolve the question. VA may also need to examine what the Veteran is required to do, whether ordinary performance standards apply, how much assistance the Veteran receives, and whether the employer has insulated the position from normal competition in the labor market.
Two federal poverty measures are frequently confused.
The Census Bureau publishes poverty thresholds for statistical purposes. The Department of Health and Human Services issues poverty guidelines that are used to determine financial eligibility for certain federal programs. HHS describes its guidelines as a simplified version of the Census thresholds, but the figures are not interchangeable.
TDIU regulations point to the Census poverty threshold for one person. When checking an income figure for a particular year, Veterans should therefore use the applicable Census table rather than an HHS guideline found through a general search.
The Census publishes different amounts based on household composition. TDIU does not use a Veteran’s family size for this comparison because § 4.16 refers specifically to the poverty threshold for one person.
This rule differs from the calculation of monthly VA disability compensation. A Veteran with a qualifying disability rating may receive additional compensation for certain dependents, but dependents do not increase the earnings benchmark used to evaluate marginal employment for TDIU.
The 2025 Census table also contains age-specific entries for a person younger than 65 and a person age 65 or older. For TDIU analysis, the relevant reference is the table’s weighted-average amount for one unrelated individual. VA regulations prohibit the use of age as a factor when evaluating service-connected disability or unemployability, which is why selecting an age-based poverty figure would conflict with the governing framework.
.png)
A Veteran whose 2025 earnings exceeded $16,330 may still have an argument that the employment was marginal. The most important exception involves work performed in a protected environment.
The regulation gives examples, but it does not provide an exhaustive list of qualifying jobs. In LaBruzza and McBride v. McDonough, the U.S. Court of Appeals for Veterans Claims explained that protected employment involves a lower-income position that is shielded in some respect from ordinary competition because of the Veteran’s service-connected disabilities.
Evidence relevant to that question may include:
An ordinary workplace accommodation does not necessarily make a job protected. The complete employment arrangement must be considered. The Veteran’s earnings, responsibilities, workplace expectations, and the reason special conditions were provided can all become part of the evidence.
VA compares employment information with wage data from the Social Security Administration. When the match indicates earnings above the poverty line, VA may ask the Veteran to verify current and past employment by completing VA Form 21-4140, Employment Questionnaire. VA may also request the form after receiving other credible evidence of substantially gainful work.
Veterans should answer any employment inquiry accurately and by the deadline stated in the notice. VA’s current public guidance says that a requested employment verification generally must be returned within 65 days of the date of the letter. That deadline is different from the response period that applies if VA later issues a formal proposal to reduce compensation.
VA cannot terminate TDIU solely because a wage record shows income above the poverty threshold.
Under 38 C.F.R. § 3.343(c), VA must establish actual employability by clear and convincing evidence. When a Veteran begins substantially gainful employment, VA generally may not reduce TDIU solely on that basis unless the Veteran has maintained the occupation for 12 consecutive months. Brief interruptions that are consistent with the disability do not necessarily break that period of continuous work.
If VA proposes to reduce TDIU and the action would lower the Veteran’s current compensation, 38 C.F.R. § 3.105(e) generally provides 60 days to submit evidence showing why payments should continue at the existing level. A request for a predetermination hearing ordinarily must be received within 30 days of the proposal.
These time periods serve different purposes:
The instructions in the actual VA letter should be reviewed carefully because the type of notice determines what response is required.
A VA letter concerning work activity should not be ignored, even when the income information appears incomplete or incorrect. A useful response may require more than reporting a yearly wage total.
Veterans may want to gather:
The right evidence depends on the reason for VA’s inquiry. A dispute about reported wages presents a different issue from a dispute over whether an above-threshold job was protected.
The $16,330 amount belongs to the 2025 Census table. It should be used when evaluating earnings received during calendar year 2025, even though the Census Bureau released the final table in September 2026.
Poverty thresholds are updated after the relevant income year has ended. The later publication date does not convert the 2025 figure into a 2026 threshold. When VA reviews earnings from different years, the comparison should use the Census amount corresponding to each year under review.
Can a Veteran hold a job while receiving TDIU?
Yes. Work is not automatically inconsistent with TDIU. The legal question is whether the employment is substantially gainful or marginal, considering both earnings and the circumstances of the job.
Will one year of earnings above $16,330 automatically end TDIU?
No. Above-threshold earnings can prompt a review, but VA must consider whether the work was protected and whether the evidence establishes actual employability. The 12-consecutive-month rule and VA’s notice procedures may also apply.
Does a spouse’s salary count toward the threshold?
The TDIU comparison is based on the Veteran’s earned income and the Census threshold for one person. It is not calculated from total household income.
Can children or other dependents raise the TDIU income benchmark?
No. Family size can affect some Census poverty calculations, but § 4.16 directs VA to use the amount for one person when evaluating marginal employment.
Does publication of a new annual threshold cause VA to review every TDIU award?
No. The Census Bureau’s yearly update does not by itself reopen or reexamine an individual Veteran’s award. VA may initiate an employment review after an SSA wage match, information submitted by the Veteran, or other evidence suggesting substantially gainful work.
Must every TDIU recipient file Form 21-4140 each year?
VA’s current instructions focus on submitting the form when VA requests employment verification. Because VA uses SSA wage matching, a Veteran should watch for correspondence and respond promptly if the agency asks for employment information.
What if VA uses the wrong poverty number?
The first step is to identify the calendar year of the earnings and compare them with the Census threshold for that same year. The HHS poverty guideline, an age-specific Census entry, or a figure for a larger household may produce a different amount and may not be the correct reference for TDIU.
Get a Clear Review of a TDIU Employment Issue
The income figure rarely tells the entire story. If VA is questioning a TDIU award, the employment history, job conditions, service-connected limitations, and procedural record should all be reviewed before deciding how to respond.
Berry Law represents Veterans in VA disability appeals. Our VA-accredited attorneys can review the notice, identify the evidence that matters, and explain the next steps. Every case is different, and no particular outcome is guaranteed.
Our attorneys are ready to help with your case. Contact us for a free consultation.
Schedule a free consultation with our experienced attorneys. We will review your case and help you understand your options.
