When veterans apply for disability benefits, one of the most commonly asked questions is: “Can you make too much money to get VA disability?” The answer depends on the type of benefit program you apply to through the U.S. Department of Veterans Affairs (VA).
Unlike some federal programs that are income-based, VA disability compensation is not tied to how much you earn from work or other financial resources. However, other VA benefits, like pension programs, do take income into account. Understanding the distinction can help ensure you apply for the benefits you are entitled to without confusion about VA disability income limits.
VA Disability Compensation and Income
VA disability compensation is a tax-free monthly payment paid to veterans with a service-connected disability. A “service-connected” disability means an injury or illness was caused or aggravated by military service.
Your employment income, retirement benefits, or family income will not impact whether you qualify for disability compensation. The VA looks exclusively at:
- Whether your condition is service-connected
- The severity of your disability is assigned a percentage rating from 0% to 100%
The higher your rating, the greater your monthly compensation. Because eligibility hinges only on disability ratings, there is no cap on how much you can earn from work or other sources. That means if you are receiving VA disability, you can continue to work or collect outside income without worrying about “making too much.”
Where Income Does Matter: VA Pension Programs
Although disability compensation has no income cap, other VA benefit programs are income-based. The biggest example is the VA Pension (sometimes called the “Veterans Pension”). This program is for wartime veterans with limited income and assets who also meet certain age or disability requirements.
For pension benefits, VA disability income limits do apply. The VA considers what it calls “countable income,” which includes wages, retirement payments, investment income, and some types of government assistance. Your income must fall below yearly limits set by Congress to qualify. These limits also factor in your number of dependents and your medical expenses.
For example:
- A single veteran applying for VA Pension must have income below a certain threshold each year.
- A veteran with dependents may have a higher income limit but must still prove financial need.
This is entirely separate from VA disability compensation, which does not have income restrictions.
Disability Compensation vs. Social Security Benefits
Another area of confusion results when someone mixes VA disability with Social Security programs. These programs are separate and unrelated. Social Security Disability Insurance (SSDI) is not income-tested if you are not working, but engaging in what the SSA calls “substantial gainful activity” can disqualify you. Supplemental Security Income (SSI), on the other hand, is means-tested and comes with strict income and resource limits.
Because veterans often apply for both VA and Social Security disability programs, it’s easy to confuse the rules. However, VA disability compensation is not reduced or denied based on your income, unlike SSI or VA Pension.
Can Working Affect VA Disability?
While your salary or wages will not directly reduce your VA disability compensation, there are situations where working might indirectly affect your benefits. Specifically:
- Veterans rated 100% disabled due to “individual unemployability” (TDIU) may lose eligibility if they can sustain full-time employment.
- Veterans with a standard 100% schedular disability rating, however, can still work without penalty.
This distinction is important for veterans who are awarded benefits because they are deemed unable to work. In those cases, earning too much from employment may lead the VA to reexamine your eligibility.
Key Takeaways
- Can you make too much money to get a VA disability? No, income does not affect VA disability compensation. This benefit depends solely on your service connection and disability rating.
- VA disability income limits only apply to need-based programs like VA Pension, not disability compensation.
- Be aware of the differences between VA disability, Social Security benefits, and pension programs to avoid confusion.
- If you receive TDIU benefits, sustained employment could impact eligibility.
Veterans who are unsure about how income or employment could affect their benefits may benefit from legal guidance. Understanding the difference between compensation and pension rules can be confusing, especially for those also navigating Social Security programs. An experienced disability attorney can help you apply, appeal, or protect the benefits you’ve earned through your service.
Let Herren Law Help With Your VA Disability Claim
Seeking veterans’ disability benefits is a difficult process that requires patience as well as understanding the law. William Herren is a disability attorney who has helped over 4,000 Houstonians get the benefits they deserve, including veterans. Call The Herren Law Firm today at 713-682-8194 (or use our online contact form) to schedule your free consultation. There’s no obligation, and we’ll take your case on a contingency fee basis with no up-front charges. You don’t owe a fee until we win your case.
