Disability Compensation
Disability compensation is a monetary benefit paid to Veterans who are determined by VA to be disabled by an injury or illness that was incurred or aggravated during active military service. These disabilities are considered to be service connected.
There are two different ways to get a VA 100 percent disability rating. The first is by having one or more disabilities that add up to a 100% disability rating. The other way to get 100% rating is through TDIU.
TDIU stands for “Total Disability based on Individual Unemployability.” Because the VA rating schedule is based on impairment of earning capacity, a veteran who cannot work should be entitled to 100% disability.
Eligibility
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You must be a Veteran.
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You must have at least one service-connected disability rated at 60% or higher OR
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Two or more service-connected disabilities with at least one rated at 40% or more with a combined rating of 70% or more.
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You must be unable to maintain substantial gainful employment as a result of your service-connected disabilities (marginal employment, such as odd jobs, is not considered substantial gainful employment for VA purposes).
The Evidence Requirements for TDIU
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Evidence of at least one service-connected disability AND
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Evidence that the service-connected disability or disabilities are sufficient, without regard to other factors, to prevent performing the mental and/or physical tasks required to get or keep substantial gainful employment AND
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One disability ratable at 60% or more, OR
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If more than one disability exists, one disability is ratable at 40% or more with a combined rating of 70% or more.
Monthly disability compensation varies with the degree of disability and the number of eligible dependents. Veterans with certain severe disabilities may be eligible for additional special monthly compensation (SMC). Disability compensation benefits are not subject to federal or state income tax.
The payment of military retirement pay, disability severance pay and separation incentive payments, known as Special Separation Benefit (SSB) and Voluntary Separation Incentive (VSI), may affect the amount of VA compensation paid to disabled Veterans.