Question:

Hi Jim, I am 80% service connected, TDIU since May of 2017. My award letter that I generate through ebenefits says that I am also P&T. I really want to get back to work. I am confused on how I go about letting the VA know that I no longer want to be considered unemployable. If I return to work, does my benefit pay automatically revert back to the original 80% designation? A VA rep told me today that because I am P&T, I will be paid at the 100% level indefinitely, no matter work status. This seems contrary to the vague and muddy information I am pulling off of the internet. Any help is greatly appreciated.

Jim's Reply:

You're in a spot that many veterans find themselves in. You're rated as unemployable due to service connected disabilities but you want to return to work as you believe that your condition is such that you can successfully reenter the work force.
 

That's great for you! I believe that regular work is of great value to veterans not only in terms of making some money but for self esteem. It feels good to accomplish a task.
 

However, yes...you'll lose the 100% benefit. When you are rated as permanently and totally (P & T) unemployable you aren't allowed to produce an income of more than the federal poverty wage or...you lose the 'permanent' 100% rating...your dependents would also lose their CHAMPVA and DEA benefits.
 

What will happen as you return to work is that VA will monitor your productivity for the next year or so. VA routinely tracks the SSA & IRS earnings of the TDIU veteran and at the point that your earned income exceeds the federal poverty wage, you'll get a notice from VA telling you that you may lose the 100% rating and revert to the 80% rating. They'll ask you to complete a VA Form 21-4140 to explain where your earned income is coming from.
 

In a nutshell, you don't need to notify VA of anything. You can begin to return to the work force and if you do well, VA will be in touch. If you discover that you aren't able to cope with the rigors of a return to gainful employment, you may not ever make enough money that VA will suspend the benefit and you'll not suffer any loss.
 

PRO TIP: Avoid those sketchy "VA Reps" at all costs. That info that you got isn't just wrong, it's dangerous. The word 'permanent' at VA doesn't mean permanent. It means that as long as you follow certain rules (don't work if you're TDIU) you are eligible for enhanced benefits for your dependents...CHAMPVA and DEA. If you were to return to work thinking your rating can't change, you'd be in for a rude awakening.
 

Good luck!