Question:

Does collecting Unemployment (state) affect your TDIU benefits? When I was discharged I was encouraged to apply for unemployment which I did. Almost a year later I was awarded TDIU and it back dated from when I was discharged. The amount I made from unemployment was almost double that of the poverty line and will surely be known once I file for my taxes this year. Because of this will I lose my TDIU?

Jim's Reply:

No. As the VA accounting is done over time and if any questions arise, you'll be given the chance to explain what happened and how. As you probably know VA is monitoring your SSA and IRS accounts and if and when any discrepancy comes up you'll be sent a VA form 21-4140 to complete. No action is taken to reduce your benefits without this notice so no worries about a surprise. In the end your financial windfall didn't come to you because of gainful employment so you should be good to go. 
 

Were I you, I'd be concerned about the provider of the unemployment benefits wanting some money back. You might want to read the fine print to ensure that the retroactive payment from VA doesn't somehow invalidate the need for the unemployment benefit.
 

This isn't at all an unusual situation because of the lag time built into the VA claims process. You may discover that nothing at all happens and nobody notices that you double-dipped or you may have some paperwork to do as you sort this out. I think worst case you may have to pay some unemployment money back, but I doubt that.
 

Hang tight, don't do anything you'll regret and this should sort itself out. Good luck.