Individual Unemployability (IU), also known as Total Disability based on Individual Unemployability (TDIU), is a total disability rating based on a veteran not being able to secure substantially gainful employment. Substantially gainful employment is an occupation where an individual can earn a living wage above poverty level. Poverty level is defined by the U.S. Census Bureau as the poverty threshold for one person, and is currently $11,770. When a veteran cannot gain or keep a job where they earn a living wage because of their service-connected disability, they can apply for IU. For information on how to qualify for IU, click here and here.
To apply for IU, a veteran must fill out and submit the VA form 21-8940. Although filling out this form can be confusing, it is what your claim will be based on so it needs to be filled out accurately. Below is an explanation of a few of the trickier sections of the form and how to avoid having your claim denied based on these. To view the form and follow along as we walk through the sections, click here.
Section I asks about the veteran’s disability and medical treatment. Block 6 should state what service-connected disability prevents the veteran from working. If the veteran has only one service-connected disability, it is presumed that disability causes the veteran’s unemployability. If the veteran has multiple service-connected disabilities, it should be indicated which disability causes the unemployability. Not specifying which service-connected disability causes the unemployability could risk having the application denied.
Blocks 7-11 refer to whether the veteran is under a doctor’s care and/or has been hospitalized within the last 12 months. Block 8 should state the frequency with which the veteran visits the doctor (once a week, twice a month, etc.), as well as the start date of treatment if it is known. Block 9 asks for the name and address of the doctor. If it is a VA clinic, the name, city, and state of the clinic will suffice. If it is a private doctor, indicate the name of the doctor as well as the address. Remember this information refers only to treatment for the service-connected disability listed in Block 6.
Section II requires employment information. Block 12 asks for the date the veteran’s disability affected their full-time employment. An example of this would be if the veteran had to switch from full-time to part-time work because of their disability, indicate the date this occurred. Block 13 asks for the date the veteran last worked full time, which would be the date the veteran’s full-time employment ended. Block 14 asks for the date the veteran became too disabled to work at all and had to stop working completely because of their disability, referring to part-time or self-employment and not just full-time. These dates may all be the same, or may vary depending on each case and disability.
Block 16 should list the employment information for the last 5 years that the veteran worked. This does not mean the last 5 calendar years, but the last 5 years in which the veteran was working. It is very important to include accurate information and addresses because the VA will send requests of employment records to some or all of the employers listed. If there is an employer that moved or is no longer in business, it should be indicated on the form. This list should also include self-employment that meets the minimum amount required by the IRS to report. Block E asks for time lost from illness, which refers to any time the veteran had to miss work because of doctor appointments or absences for being too sick to work.
Section III and the rest of the form are self-explanatory, but for more help click here. It is important to note that the form must be signed by the veteran; it cannot be signed by a third party source, such as a power of attorney. Remember, it is essential to include accurate information because the VA will be using this form to decide the veteran’s qualifications for IU.
Author Melanie Franco, Hill & Ponton, P.A. Attorney