If you receive Total Disability Individual Unemployability (TDIU) benefits, the holiday season can raise urgent questions: Can I take a seasonal retail job? Will a few weeks of temporary work affect my benefits? What if my family business needs help during the rush? The answer depends on whether your work qualifies as “marginal employment” or occurs in a “protected work environment”—two VA terms with specific income thresholds and documentation requirements. Here’s how to navigate seasonal work without jeopardizing your TDIU status.
TDIU Basics and Income Thresholds
TDIU provides 100% disability compensation to veterans whose service-connected conditions prevent them from maintaining substantially gainful employment. To qualify, you must:
- Have at least one service-connected disability rated 60% or higher, or
- Have a combined rating of 70% or more, with at least one condition rated 40% or higher, and
- Be unable to secure or follow a substantially gainful occupation due to your service-connected disabilities
The VA defines substantially gainful employment using the federal poverty threshold for one person. In 2025, that threshold is approximately $15,060 per year (this amount adjusts annually). If your annual income exceeds this threshold, the VA may determine that your work is substantially gainful and discontinue your TDIU benefits.
What counts as income?
For TDIU purposes, the VA considers:
- Wages and salaries: All earned income from employment
- Self-employment income: Net profit from a business you own or operate
- Bonuses and commissions: Additional compensation tied to your work
The VA does not count the following toward the income threshold:
- VA disability compensation
- Social Security Disability Insurance (SSDI)
- Supplemental Security Income (SSI)
- Pensions or retirement benefits
- Investment income or rental income (unless you actively manage properties as a business)
Marginal Employment: What It Means and How It’s Protected
Marginal employment is work that falls below the federal poverty threshold and does not demonstrate an ability to maintain substantially gainful employment. If your annual income stays under ~$15,060, the VA considers your work marginal and will not discontinue your TDIU benefits—provided your work is consistent with your claimed disabilities.
Key factors the VA evaluates
The VA doesn’t just look at income. They also assess:
- Hours worked: Are you working part-time (10–15 hours/week), or full-time with significant accommodations?
- Job duties: Is the work physically or cognitively demanding, or does it align with your limitations?
- Consistency: Are you able to maintain regular attendance, or do you frequently miss work due to your conditions?
- Accommodations: Does your employer provide modifications (flexible hours, reduced duties, assistive technology) that allow you to work?
If your work is marginal and consistent with your disabilities, your TDIU benefits are safe. However, if the VA determines you’re working at a level that contradicts your claimed inability to work, they may question your TDIU eligibility—even if your income is below the threshold.
Holiday scenarios: Marginal employment in action
Scenario 1: Seasonal retail, 15 hours/week for 8 weeks
You work at a gift shop during November and December, earning $12/hour for 15 hours per week. Total income: ~$1,440.
Result: This is marginal employment. Your income is well below the annual threshold, and the short duration shows you cannot maintain year-round work.
Scenario 2: Family business, 20 hours/week for 6 weeks
You help your spouse’s bakery during the holiday rush, working the register and packaging orders. You earn $15/hour for 20 hours per week. Total income: ~$1,800.
Result: This is marginal employment, but document it carefully. If the VA sees regular, ongoing involvement in a family business, they may scrutinize whether you’re truly unable to work.
Scenario 3: Warehouse, full-time for 2 months
You take a full-time warehouse job (40 hours/week) at $18/hour for November and December. Total income: ~$5,760.
Result: This is risky. While the income is still below the annual threshold, the VA may view full-time work—even temporarily—as evidence that you can maintain substantially gainful employment. If your TDIU is based on physical limitations (back injury, joint pain), full-time warehouse work could trigger a review.
Protected Work Environments: When Accommodations Make Work Possible
A protected work environment is a job where you work only because of significant accommodations, family assistance, or sheltered conditions that would not exist in a typical workplace. The VA recognizes that some veterans can perform limited work tasks under highly controlled circumstances, and this does not necessarily mean they can compete in the open labor market.
Examples of protected work
- Family business: You work for a family member who provides flexible hours, reduced duties, and tolerance for absences
- Sheltered workshop: You work in a setting designed for individuals with disabilities, with built-in accommodations
- Volunteer work converted to part-time paid role: A nonprofit where you volunteered starts paying you a small stipend, with no expectation of productivity or regular hours
- Highly accommodated roles: You work remotely with flexible deadlines, minimal supervision, and the ability to stop work during flare-ups
Why protected work doesn’t disqualify TDIU
The VA understands that protected work is not representative of the competitive labor market. If you can only work because:
- Your employer is a family member who tolerates poor attendance
- Your job duties are significantly reduced compared to a typical role
- You receive accommodations that would not be available in a standard workplace
…then your work does not prove you can maintain substantially gainful employment elsewhere.
Holiday protected work scenarios
Scenario 1: Helping a family member’s business
Your sibling owns a catering company and asks you to help with holiday events. You work 10 hours per week, with the understanding that you can leave early if your PTSD symptoms flare or your chronic pain worsens.
Result: This is protected work. Document the accommodations (flexible hours, ability to leave without notice) and the family relationship. This strengthens your case that you can only work under non-competitive conditions.
Scenario 2: Remote data entry with disability-friendly employer
A disability-focused nonprofit hires you for 12 hours per week of remote data entry. You set your own hours, work at your own pace, and can pause for medical appointments or bad days.
Result: This is protected work. The accommodations (remote, self-paced, flexible) are key. Document them in detail.
Documenting Your Work: The Key to Compliance
Whether your work is marginal or protected, documentation is your insurance policy. If the VA reviews your TDIU status, you’ll need proof that your employment does not contradict your inability to maintain substantially gainful work.
What to document
Create a work log that includes:
- Employer name and relationship: Is this a family business? A disability-friendly nonprofit? A standard employer?
- Job title and duties: What tasks do you perform? How physically or cognitively demanding are they?
- Hours worked per week: Track your schedule meticulously. If you frequently miss shifts or leave early, note why.
- Gross income: Record your earnings each pay period to ensure you stay below the annual threshold.
- Accommodations provided: List every modification your employer makes (flexible hours, reduced duties, ability to work from home, frequent breaks, etc.).
- Health-related absences: Document any days you miss due to service-connected conditions, and note symptoms or flare-ups.
Supporting documents to save
Keep copies of:
- Offer letter or job description: Shows the formal terms of your employment
- Pay stubs: Proves your income stays below the threshold
- Emails or notes from your employer: Especially any acknowledging accommodations or flexibility
- Medical records: If you see a provider during your employment period and discuss work limitations, request copies of those notes
Reporting Changes to the VA: When and How
The VA requires you to report any material change in your employment status. “Material” generally means:
- You start a new job
- Your income increases significantly (even if it stays below the threshold)
- Your work hours or duties change in a way that might affect your TDIU eligibility
How to report
You can report employment changes via:
- VA.gov: Log in and update your information under Disability > Manage Benefits
- Phone: Call 1-800-827-1000 and request to speak with a representative about a TDIU employment update
- Mail: Send a letter to your Regional Office explaining the change, with supporting documents (pay stubs, job description)
Pro tip: When reporting, frame your work clearly: “I am working [X hours/week] in a protected environment due to family accommodations. My annual income will not exceed the federal poverty threshold.” This signals to the VA that you understand the rules and are complying in good faith.
When NOT to report
You do not need to report:
- Volunteer work (unpaid)
- One-time gifts or help from family (e.g., your sibling pays you $200 to help move furniture one weekend)
- Investment income, rental income, or other passive earnings
Staying Compliant During the Holidays
The holiday season is a common time for TDIU recipients to consider temporary work—either to supplement income or to help family. Here’s how to stay compliant:
1. Calculate your income proactively
Before accepting any work, estimate your total annual earnings. If a holiday job would push you over ~$15,060, decline it or negotiate fewer hours.
2. Prioritize protected environments
If possible, work for family or disability-friendly employers who understand your limitations and will provide accommodations. This makes it easier to prove your work is protected.
3. Track everything in real time
Don’t wait until January to compile records. Log your hours, income, and accommodations weekly. This makes reporting accurate and stress-free.
4. Be honest with employers
If you’re working for someone outside your family, explain your situation upfront: “I have a disability that limits my ability to work full-time. I can commit to [X hours/week], but I may need to miss shifts due to medical issues.” This creates a paper trail of accommodations.
5. Report promptly
If your work situation changes mid-season (e.g., you’re offered more hours or a raise), report it to the VA within 30 days. Prompt reporting demonstrates good faith and reduces the risk of overpayment or benefit termination.
Common Mistakes and How to Avoid Them
Mistake 1: Assuming any income under the threshold is safe
Solution: Income is only one factor. If you earn $14,000 working 40 hours per week with no accommodations, the VA may still question your TDIU eligibility. Focus on how you work, not just how much you earn.
Mistake 2: Failing to document accommodations
Solution: If your employer provides flexibility, get it in writing. A simple email—”Just confirming you can leave early on bad pain days”—is enough to establish a protected work environment.
Mistake 3: Not reporting seasonal work at all
Solution: Even if your work is clearly marginal, report it. The VA may audit your benefits later, and unreported income can trigger overpayment demands or fraud investigations.
Mistake 4: Mixing self-employment with TDIU
Solution: Self-employment is highly scrutinized. If you run a side business (e.g., selling crafts on Etsy), track your hours and net income carefully. The VA may view consistent self-employment as evidence of work capacity, even if your profit is low.
Mistake 5: Ignoring flare-ups and absences
Solution: If you miss shifts or leave early due to your conditions, document it. This strengthens your case that you cannot maintain reliable employment—a key TDIU criterion.
Your TDIU Work Compliance Checklist
Use this checklist to stay compliant during holiday employment:
- ☐ Calculate total annual income before accepting any work
- ☐ Confirm your earnings will stay below the federal poverty threshold (~$15,060 for 2025)
- ☐ Prioritize family businesses or disability-friendly employers
- ☐ Request accommodations in writing (flexible hours, reduced duties, remote work)
- ☐ Create a work log tracking hours, income, and accommodations
- ☐ Save pay stubs, offer letters, and employer emails
- ☐ Document any missed shifts or early departures due to service-connected conditions
- ☐ Report your employment to the VA within 30 days of starting work
- ☐ Frame your report clearly: marginal or protected work, below threshold
- ☐ If income or hours increase mid-season, report the change immediately
Need help tracking your TDIU-compliant work? Download our TDIU work log template to document hours, accommodations, and income—get your free template here.