VA Disability + Social Security: TDIU, CRDP & Survivor Benefits (2026)
Bottom Line Up Front: You can receive VA disability AND Social Security - they don't offset each other. VA disability is 100% tax-free. At 100% VA rating, you receive $3,832/month (2026 rates). TDIU (Total Disability Individual Unemployability) provides 100% pay at lower rating. CRDP allows military retirees to receive full retirement AND VA disability. For survivors: DIC ($1,612/month) may be better than SBP. This guide explains how to maximize all benefits.
Table of Contents
- VA Disability Basics
- TDIU Explained
- CRDP for Military Retirees
- Social Security + VA Disability
- Survivor Benefits
- Common Mistakes
- FAQ
- Official Sources
VA Disability Basics
2026 VA Disability Compensation Rates
Monthly rates (veteran alone, no dependents):
| Rating | Monthly Payment | Annual Payment |
|---|---|---|
| 10% | $175.51 | $2,106 |
| 20% | $346.98 | $4,164 |
| 30% | $537.68 | $6,452 |
| 40% | $774.84 | $9,298 |
| 50% | $1,103.34 | $13,240 |
| 60% | $1,396.32 | $16,756 |
| 70% | $1,759.96 | $21,120 |
| 80% | $2,045.56 | $24,547 |
| 90% | $2,298.80 | $27,586 |
| 100% | $3,832.06 | $45,985 |
Additional amounts for dependents at 30%+:
| Dependent | Additional Monthly |
|---|---|
| Spouse | $57-$197 (varies by rating) |
| Each child | $27-$94 (varies by rating) |
| Dependent parent | $45-$170 (varies by rating) |
VA Disability Is TAX-FREE
Key point: VA disability compensation is NOT taxed at federal or state level.
$3,832/month at 100% = $3,832 in your pocket
Compare to regular income:
- $3,832 salary = ~$2,900 after taxes (22% bracket)
- VA disability equivalent to ~$4,900 taxable income
What VA Disability Covers
Eligibility requirements:
- Current disability - Medical condition exists now
- Service connection - Occurred during or was aggravated by service
- Nexus - Medical evidence linking condition to service
Common service-connected conditions:
- Hearing loss/tinnitus (most common)
- PTSD/mental health
- Back/spine conditions
- Knee injuries
- Respiratory conditions
- TBI (traumatic brain injury)
TDIU Explained
What Is TDIU?
Total Disability Individual Unemployability (TDIU) pays you at 100% rate even if your combined rating is less than 100%.
Purpose: Recognizes that some veterans cannot work due to service-connected disabilities even without 100% schedular rating.
TDIU Eligibility Requirements
Option 1: Single Disability 60%+
- One service-connected disability rated 60% or higher
- Unable to maintain substantially gainful employment
Option 2: Combined Rating 70%+
- Combined rating of 70% or higher
- At least one disability rated 40% or higher
- Unable to maintain substantially gainful employment
"Substantially gainful employment" means:
- Earning above federal poverty level (~$15,060/year)
- Holding marginal employment doesn't disqualify you
- Sheltered employment (family business, accommodations) doesn't count against you
TDIU Rates
TDIU pays the same as 100% schedular:
| Status | Monthly (2026) |
|---|---|
| TDIU, no dependents | $3,832.06 |
| TDIU + spouse | $4,029.20 |
| TDIU + spouse + 1 child | $4,168.83 |
| TDIU + spouse + 2 children | $4,308.46 |
How to Apply for TDIU
Step 1: Complete VA Form 21-8940 (Application for TDIU)
Step 2: Complete VA Form 21-4192 (employers fill out employment history)
Step 3: Submit with supporting evidence:
- Medical records showing inability to work
- Employment records showing job losses due to disability
- Buddy statements from coworkers
- Statements from healthcare providers
Step 4: Attend C&P exam if scheduled
Processing time: 3-6 months typically
TDIU vs Schedular 100%
| Factor | TDIU | Schedular 100% |
|---|---|---|
| Monthly rate | Same ($3,832) | Same ($3,832) |
| Can you work? | Limited (marginal only) | No restriction |
| Protected income | Yes | Yes |
| Easier to get | Sometimes | Requires severe disabilities |
| Chapter 35 DEA | Yes | Yes |
| CHAMPVA | Yes | Yes |
Key difference: TDIU has employment limitations. Schedular 100% does not.
CRDP for Military Retirees
The Problem: VA Offset
Before 2003: Military retirees had VA disability deducted from retirement pay dollar-for-dollar.
Example (old rules):
- Military retirement: $2,500/month
- VA disability: $1,500/month
- Total received: $2,500 (not $4,000)
The VA pay "offset" meant you got zero extra money for VA disability.
CRDP: The Solution
Concurrent Retirement and Disability Pay (CRDP) allows eligible retirees to receive BOTH military retirement AND VA disability without offset.
Eligibility:
- Military retiree with 20+ years OR medical retiree
- VA disability rating of 50% or higher
- Service-connected disabilities
How it works:
- Retirement pay is RESTORED dollar-for-dollar
- VA disability paid IN ADDITION to full retirement
- Phase-in complete (100% restoration now)
Example (CRDP):
- Military retirement: $2,500/month
- VA disability (60%): $1,396/month
- Total received: $3,896/month (full restoration)
CRSC: Combat-Related Special Compensation
CRSC is an alternative to CRDP for combat-related disabilities.
Eligibility:
- Military retiree with 20+ years OR Chapter 61 (medical)
- Combat-related disability (any rating)
- Applied for CRSC through your branch
Combat-related includes:
- Direct combat (weapons fire, IED, etc.)
- Hazardous duty training
- Conditions simulating war
- Instrumentalities of war
CRSC vs CRDP:
| Factor | CRDP | CRSC |
|---|---|---|
| Minimum rating | 50% | Any (0%+) |
| Combat-related required | No | Yes |
| Tax status | Taxable | Tax-FREE |
| Chapter 61 eligible | Yes | Yes |
You cannot receive both CRSC and CRDP - choose the higher amount.
How to Apply
CRDP: Automatic if you meet criteria. No application needed.
CRSC: Apply through your branch:
- Army: hrc.army.mil
- Navy: mynavyhr.navy.mil
- Air Force: afpc.af.mil
- Marines: manpower.usmc.mil
Social Security + VA Disability
Can You Get Both?
Yes, absolutely. VA disability and Social Security are completely separate programs.
VA Disability: Based on service-connected conditions Social Security: Based on work credits and disability/retirement
They do NOT offset each other. You can receive full amounts from both.
Social Security Disability (SSDI)
Eligibility:
- Unable to work due to disability (any cause, not just service-connected)
- Worked enough to earn credits (usually 10 years)
- Disability expected to last 1+ year or result in death
Average SSDI: ~$1,500/month (2026) Maximum SSDI: ~$3,800/month (2026)
Social Security Retirement
Eligibility:
- Age 62+ (reduced benefits)
- Age 67 (full retirement age for most)
- Worked enough to earn 40 credits
Average retirement: ~$1,800/month Maximum retirement: ~$4,000/month (if claimed at 70)
Combined Benefits Example
100% VA Disabled Veteran at Age 62:
| Benefit | Monthly | Taxable? |
|---|---|---|
| VA Disability (100%) | $3,832 | No |
| Social Security Retirement | $1,800 | Partially |
| Total | $5,632 | Mixed |
Combined annual income: $67,584 (mostly tax-free)
Taxation of Combined Benefits
VA Disability: 100% tax-free (always)
Social Security with VA Disability:
- If ONLY income is VA + SS, SS is usually tax-free
- VA disability doesn't count as "income" for SS taxation
- Only 50-85% of SS is taxable IF combined income exceeds thresholds
For most disabled veterans, combined income is largely tax-free.
Survivor Benefits
Dependency and Indemnity Compensation (DIC)
What it is: Monthly benefit to surviving spouse/children of veteran who:
- Died from service-connected cause
- Was rated 100% disabled for 10+ years before death
- Was rated 100% from discharge for 5+ years before death
2026 DIC Rates:
| Recipient | Monthly |
|---|---|
| Surviving spouse | $1,612.21 |
| Each child (alone) | $679.34 |
| Add for each child (with spouse) | $358.03 |
Additional amounts:
- Aid & Attendance: +$403.46/month
- Housebound: +$190.15/month
DIC vs SBP
Survivor Benefit Plan (SBP): Military retirement survivor benefit DIC: VA survivor benefit
Key differences:
| Factor | SBP | DIC |
|---|---|---|
| Amount | 55% of retirement | $1,612 flat |
| Taxable | Yes | No |
| Based on | Retirement pay | Service-connected death or 100% rating |
| Cost to retiree | 6.5% of retirement | Free |
| Offset | DIC offsets SBP | SBP offsets DIC |
SBP-DIC Offset and SSIA
The problem: If surviving spouse receives both SBP and DIC, DIC amount is subtracted from SBP.
Special Survivor Indemnity Allowance (SSIA): Partially compensates for SBP-DIC offset.
2026 SSIA: $342/month maximum
Example:
- SBP: $1,200/month
- DIC: $1,612/month
- SBP offset: $1,200 - $1,612 = $0 SBP paid
- SSIA: +$342/month
- Total: $1,612 + $342 = $1,954/month
Survivor Planning
If you're 100% VA disabled:
- Ensure spouse knows about DIC eligibility
- Consider whether SBP is worth the cost
- If 100% for 10+ years, spouse gets DIC automatically
- SGLI ($500K) provides separate death benefit
If you have significant retirement:
- SBP makes sense if retirement > DIC equivalent
- Factor in SBP-DIC offset
- Consider SSIA partial compensation
Common Mistakes
Mistake 1: Not Applying for TDIU
Why it's wrong: Many veterans at 60-90% could qualify for TDIU, getting 100% pay.
Better: If you can't work due to service-connected disabilities, apply for TDIU.
Mistake 2: Thinking VA Offsets Social Security
Why it's wrong: They're completely separate. You can get both.
Better: Apply for both. Maximize all benefits you've earned.
Mistake 3: Not Understanding CRDP
Why it's wrong: Military retirees at 50%+ VA should get full concurrent pay.
Better: Verify you're receiving CRDP if eligible. Contact DFAS if not.
Mistake 4: Spouse Not Knowing About DIC
Why it's wrong: DIC must be applied for. It's not automatic.
Better: Discuss with spouse. Ensure they know to file VA Form 21-534EZ.
Mistake 5: Paying for SBP When DIC Is Higher
Why it's wrong: If 100% VA disabled, spouse gets $1,612 DIC regardless of SBP.
Better: Calculate whether SBP cost is worth it given DIC offset.
FAQ
Can I work while receiving VA disability?
Yes (with exception). Schedular ratings have no employment restrictions. TDIU limits you to marginal employment only.
Does VA disability count as income for taxes?
No. VA disability compensation is 100% tax-free at federal and state levels.
How do I get CRDP?
It's automatic. If you're a military retiree with 50%+ VA disability, DFAS should provide CRDP automatically. If not receiving, contact DFAS.
Can my spouse get both DIC and SBP?
Partially. DIC offsets SBP dollar-for-dollar. SSIA provides partial compensation ($342/month max).
What's the fastest way to 100%?
Either schedular or TDIU. Schedular requires severe disabilities. TDIU requires 60%+ single or 70%+ combined with unemployability.
Does VA disability affect my security clearance?
No. VA disability rating doesn't affect security clearance eligibility.
Action Steps
If You're Not Yet Rated:
- Gather all medical records from service
- Document all conditions caused or aggravated by service
- File VA disability claim (use VSO for free help)
- Attend all C&P examinations
- Appeal if rating seems too low
If You're Rated But Not 100%:
- Review all service-connected conditions
- File for increase on worsening conditions
- Consider TDIU if unable to work (at 60%+ single or 70%+ combined)
- File secondary claims for conditions caused by rated disabilities
If You're a Military Retiree:
- Verify CRDP is being applied (50%+ VA required)
- Consider CRSC if disabilities are combat-related
- Review SBP election given DIC considerations
For Survivor Planning:
- Ensure spouse understands DIC eligibility
- Document service-connected conditions thoroughly
- Consider whether SBP makes financial sense
- Keep beneficiary designations current (SGLI, TSP, etc.)
Official Sources
- VA Disability Compensation Rates: va.gov/disability/compensation-rates/ (Last verified: 2026-02-22)
- TDIU Information: va.gov/disability/eligibility/special-claims/unemployability/ (Last verified: 2026-02-22)
- CRDP/CRSC: dfas.mil/RetiredMilitary/disability/ (Last verified: 2026-02-22)
- DIC Rates: va.gov/disability/dependency-indemnity-compensation/ (Last verified: 2026-02-22)
- Social Security: ssa.gov (Last verified: 2026-02-22)
Related Guides
- VA Disability Claims Step-by-Step
- VA Disability and Taxes Complete Guide
- Medical Separation vs Medical Retirement
- SGLI Life Insurance Complete Guide
Remember: You've earned these benefits through your service. VA disability and Social Security are separate programs - you can receive both. If you're struggling to work due to service-connected conditions, explore TDIU. If you're a military retiree, ensure you're receiving CRDP. Maximize every benefit you're entitled to.