Question:

Jim, I am a Disabled Veteran and got approved for TDUI Permanent and Total 4 years ago. However, when I first stopped working 2 years prior I gave money (basically invested) to someone to start a business. I wasn't making any income from that so it was recommended I apply for TDUI. Now the business is doing quite well. Will I be able to draw owners dividends from all the profits? Or would I have to sell my percentage to get some of the funds to improve my quality of life? I could also call and have them put me back at 90 percent if that is another possibility?

Jim's Reply:

First up...we never ever call VA and offer to give up a benefit. Never. Your honesty and attempt to do the right thing will always backfire on you. Another rule that goes in tandem with this, never ever volunteer any information that wasn't directly and specifically asked of you. Even then, think your answers through very carefully.
 

You remember that time in basic when you volunteered for something? Just don't.
 

You can't call anyone at VA and ask this kind of a question. Having said all that there is only one sure fire way to know how VA will manage your particular circumstance...you go ahead and take your profits as you'd like and you report all your income transactions to the IRS when you file your income taxes.
 

As all this is going on VA is monitoring your SSA and your IRS account...you're TDIU and shouldn't have an income of over the federal poverty limit and if you do, you'll receive notice from VA to complete a VA Form 21-4140 to explain your income. At that point you'll learn about all the varieties of income you may earn through various ways and you'll be able to explain your working/economic position to VA.
 

If VA determines that your income violates the TDIU rules, your rating is likely to fall back to the base rate you had prior to the TDIU rating. If your income should fall again in the future and you become eligible for TDIU, you'll go though the application process again.
 

As you can see this entire process may take years to complete...don't get in a hurry, allow the process to work. This isn't an uncommon occurrence at your VA and as so often the case, the way to get a complex question answered correctly is to start the paperwork and/or allow the process to proceed and adjudicate it as usual.
 

Good luck!