5 Steps to Use VA Form 21-8940 to Turn a 70% Rating into TDIU (And Skip the C&P)

Let's have a real talk. You’re staring at that benefits letter. It says "70% Service-Connected."

Seventy percent. It’s a significant number, no doubt. It acknowledges a lot of pain and sacrifice. But here's the kicker... it doesn't pay 100% of the bills. And when you're sitting at your kitchen table, unable to imagine driving to an office, sitting through a meeting, or even just focusing for eight hours... that 70% feels like a lie.

Your body and mind are telling you you're 100% unemployable. So why doesn't your rating match your reality?

Welcome to the most frustrating gap in the VA system. You're not alone in this. Millions of veterans are in this exact spot—rated high, but not high enough to survive on, and too disabled to work.

But there is a bridge across this gap. It's called TDIU (Total Disability based on Individual Unemployability). And the key to that bridge is one single, powerful, and often misunderstood form: VA Form 21-8940.

Most vets think this form automatically triggers a new round of C&P (Compensation & Pension) exams. They brace for another fight, another interrogation. But what if I told you there's a way to use this form to leverage your existing 70% rating so powerfully that you could potentially skip the new C&P exam circus entirely?

It's not a myth. It's not a "loophole." It's about building an iron-clad case. It's about submitting a claim so "fully developed" that the VA rater has everything they need to say "Approved."

Grab your coffee. We're going to tear down this form, section by section, and build your TDIU case from the ground up. This is how you show the VA that your 70% rating already proves you can't work.

First, What is TDIU (Individual Unemployability), Really?

This is the first concept we have to get right.

TDIU is not a separate disability rating. You won't see "TDIU" on your list of conditions with a percentage next to it.

Instead, TDIU is a status. It's the VA's way of acknowledging that your service-connected disabilities, even if they don't mathematically add up to 100%, prevent you from securing and following any "substantially gainful employment."

What's that mean in plain English?

• Substantially Gainful Employment: This is work that pays above the federal poverty line for a single person. If you're working odd jobs, making a few hundred bucks a month bagging groceries, that's likely "marginal employment" and generally doesn't count against you.
• Securing and Following: This is the magic phrase. Maybe you can get a job. You interview well. But can you keep it? If your 70% PTSD rating causes you to have conflicts with supervisors and you get fired after 3 months, you cannot "follow" employment. If your 50% back condition requires you to miss 10 days of work a month, you cannot "follow" employment.

When the VA grants you TDIU, you keep your 70% schedular rating, but you get paid at the 100% rate. That is the entire goal.

The 70% Sweet Spot: Schedular vs. Extraschedular TDIU

This is where your 70% rating becomes so important. There are two paths to TDIU. You must know which one you're on.

1. Schedular TDIU (38 CFR § 4.16a)

This is the "standard" path. It's the one you want to be on. To qualify, you must meet one of these two criteria:

• The 60% Rule: You have one single service-connected disability rated at 60% or more. (e.g., just PTSD at 70%).
• The 70/40 Rule: You have multiple service-connected disabilities that combine to 70% or more, AND at least one of those disabilities is rated at 40% or more.

Look at your screen. The title of this post is about a 70% rating. You are already in the sweet spot for Schedular TDIU. If your 70% combined rating includes at least one condition rated at 40% (like 40% for a back injury, or 50% for PTSD), you meet this requirement. This is a huge advantage.

2. Extraschedular TDIU (38 CFR § 4.16b)

This is the "exception" path. This is for veterans who don't meet the 60% or 70/40 rules but are still unemployable due to their service-connected conditions. (e.g., their highest rating is 30% and their combined is only 50%).

Extraschedular claims are much, much harder to win. They have to be sent up to the VA Director for approval. They almost always require new C&P exams.

Your mission: Prove you fit the Schedular path. Your 70% rating is the key.

Your Master Key: Deconstructing VA Form 21-8940

This form is officially titled the "Veteran's Application for Increased Compensation Based on Unemployability." It's not just paperwork; it's your battlefield. Let's walk through the critical sections.

• Section I: Veteran's Identification Information. Easy. Don't mess it up. Name, SSN, VA File Number.
• Section II: Disabilities. This is your first test. It asks you to "list all your service-connected disabilities that prevent you from working." Do not list everything. List the specific disabilities that make work impossible, especially the one(s) that get you to that 40% or 60% schedular requirement.
• Section III: Employment History. This is the heart of the claim. You must list all employment for the last five years you worked. This is critical. Don't just list the company and dates. This is where you start building your narrative.
• Section IV: Why You Can't Work. This section asks when your disability prevented you from working and how it prevents you. This is your personal statement. This is where you connect the dots for the rater.
• Section V: Education & Training. Be honest. If you have a Master's degree, the VA will want to know why you can't do sedentary desk work. You'll need to explain how your PTSD (for example) makes any cognitive work impossible, regardless of your degree.
• Section VI: Remarks. This is your secret weapon. This is the blank canvas where you tie everything together. You use this space to explain in your own words what the form doesn't ask. "As noted in Section IV, I left my job as a project manager because my service-connected anxiety and panic attacks, rated at 70%, made it impossible to lead team meetings..."

5 Steps to Use VA Form 21-8940 to Turn a 70% Rating into TDIU

Okay, let's build the case. This is the step-by-step plan to file a claim so strong, it just begs to be approved without a new exam.

Step 1: Master the "Schedular Math" (38 CFR § 4.16a)

Before you write a single word, pull out your VA rating decision letter. Look at your list of disabilities and their combined rating.

Confirm, with 100% certainty, that you meet the schedular rules.

• Scenario A: Your 70% is for one condition (e.g., "PTSD: 70%"). You're golden. This meets the 60% rule.
• Scenario B: Your 70% is combined from multiple conditions. (e.g., PTSD 50%, Back 20%, Tinnitus 10%, which combine to 70%... yes, VA math is weird). You are also golden. You have one condition at 40%+ (the 50% PTSD) and your total is 70%+.

Why does this matter? Because in your "Remarks" section (Section VI) of the form, you're going to tell the rater you qualify. Don't make them guess.

Example Remark: "I am applying for TDIU on a schedular basis under 38 CFR § 4.16a. My 70% combined rating includes a 50% rating for PTSD, which meets the requirement for one disability at 40% or more."

Boom. You just did the rater's job for them.

Step 2: Tell Your "Why I Can't Work" Story in Section IV

Section IV, Item 26A asks, "How do your service-connected disabilities prevent you from securing or following any substantially gainful employment?"

A weak answer (gets you a C&P exam): "My back hurts too much and my PTSD is bad. I can't concentrate. It's just too hard to work."

A strong answer (builds your case): "My 70%-rated PTSD causes hypervigilance and severe social anxiety, making it impossible to work in an office environment with other people (see attached buddy letter from my wife). My 40%-rated lumbosacral strain requires me to lie down for 2-3 hours every afternoon, which no employer can accommodate (see attached DBQ from Dr. Smith)."

See the difference? You are not just listing symptoms. You are listing functional impairments. You are connecting your rated disability to an inability to perform work tasks. Use bullet points if you have to. Be specific.

Step 3: Build Your "No C&P Exam" Evidence Package

This is the most important step. A new C&P exam is ordered when the rater has questions. Your job is to answer every possible question before they can ask it. This is the evidence you will submit with your VA Form 21-8940.

1. The "Nexus Letter" / Medical Opinion (The Silver Bullet):

This is the most powerful piece of evidence you can get. Go to your private doctor, your VA doctor, or a private "nexus letter" service. Ask them to write a medical opinion that specifically addresses your unemployability. It MUST contain the following:

• A review of your medical records.
• A clear statement of your diagnoses.
• The "magic words": A medical opinion on whether it is "at least as likely as not" that your service-connected disabilities (list them!) prevent you from "securing or following any substantially gainful employment."
• The doctor's rationale. "The veteran's PTSD symptoms (panic attacks, inability to concentrate) and his chronic back pain (inability to sit for more than 20 minutes) directly preclude him from performing the tasks of his previous job as an accountant, or any other sedentary work."

A letter like this, especially if it's on a DBQ (Disability Benefits Questionnaire) form, can be so powerful that a new C&P exam would be redundant. The rater may be able to make a decision based on this evidence alone.

2. Lay Statements / Buddy Letters (VA Form 21-10210):

Get statements from people who see you. Your spouse, your siblings, your friends, your old boss. They can't give medical opinions, but they can be factual witnesses to your functional decline.

Good example: "My husband, John, used to be a foreman. Since his TBI, I've seen him try to work. He was fired from his last two jobs. He forgets instructions five minutes after he's told them. He gets confused and angry at his co-workers. He now spends most of the day in a dark room because of his migraines."

Step 4: Address the "Other Form" (VA Form 21-4192) Head-On

This is the form that scares everyone. It's the "Request for Employment Information in Connection with Claim for Disability Benefits."

In the past, the VA would send this to all the employers you listed in Section III. This was terrifying. What if you had a bad boss? What if they just check "No, he was fine" to get you off their desk?

Good news: The rules have changed. The VA is no longer required to send this form or wait for a response if the other evidence in your file is sufficient to grant the claim.

By providing the strong Nexus Letter (Step 3), you are giving the VA the "sufficient evidence" it needs to bypass this form. If you do have a supportive old boss, you can absolutely ask them to fill one out and submit it yourself as partof your FDC package. But if you don't, you build your case so strong that the VA doesn't even need it.

Step 5: File as a "Fully Developed Claim" (FDC)

This is the final move. The Fully Developed Claim program is the VA's "fast lane."

When you submit your claim online (which you should), you will be given the option to file as an FDC. By checking this box, you are officially stating:

"Dear VA, I have gathered and submitted all the evidence required to decide my claim. I have no more evidence to give. You do not need to go looking for anything else. Please make a decision based on what I have sent you."

You will submit your VA Form 21-8940 plus your Nexus Letter/DBQ, plus your Lay Statements, all in one neat digital package.

This is the explicit request to the VA to not go searching for more evidence (i.e., not order a C&P exam) and to make a decision based on the mountain of proof you just provided.

The Big Question: Can You Really Avoid a New C&P Exam?

Let's be 100% honest. It is not guaranteed. The VA has a "duty to assist," and if they feel your records are old or your doctor's letter is weak, they will order a C&P exam to protect their legal bases.

However, you can make that C&P exam highly unlikely.

A rater's job is to make a decision. If you hand them a "Fully Developed Claim" that has:

1. Your 21-8940 form, correctly filled out.
2. A clear statement that you meet schedular requirements.
3. A powerful, recent (within 6-12 months) DBQ or Nexus Letter from a doctor that clearly links your 70% rating to unemployability...
4. ...and supporting buddy letters that confirm the doctor's findings...

...you have created a "duty to grant." You've made it easier for the rater to click "Approve" than it is to draft a request for a new exam. You've handed them the medical evidence they were going to order the C&P to get. You've already done their job for them.

This is how you skip the C&P. You make it redundant and unnecessary.

Common, Costly Mistakes When Filing for TDIU

Avoid these landmines. This is what gets claims delayed or denied.

• Mistake 1: The "Vague" Application. Just sending in Form 21-8940 and nothing else. This is a guaranteed ticket to a C&P exam, and it's a 50/50 shot.
• Mistake 2: Not Connecting the Dots. You must explicitly link your service-connected disability to your unemployment. If you lost your job because the company went under, that doesn't count. You must prove you lost it or can't get a new one because of your disability symptoms.
• Mistake 3: Hiding a Good Work History. Don't. The VA will find it anyway. If you have a Master's degree and 20 years as an accountant, you must explain in detail why your symptoms now prevent you from doing that "easy" desk job. (e.g., "My 70% PTSD rating prevents the concentration needed for accounting. My medication makes me foggy.")
• Mistake 4: Missing the Schedular Argument. If you're at 70% combined but don't have that single 40% rating, you fall into the Extraschedular bucket, which is a much harder fight. Double-check your math!

Your Trusted Links (The VA's Own Rulebook)

Don't just take my word for it. Read the source. This is the foundation of your E-E-A-T (Expertise, Authoritativeness, Trustworthiness) when building your claim.

FAQ: Your Top Questions on TDIU and Form 21-8940

Conclusion: Your 70% Is the Proof, Not the Barrier

That 70% rating isn't a wall. It's a key. It's the VA already acknowledging that you are significantly impaired. You're not starting from zero. You're starting on third base.

Filing for TDIU with VA Form 21-8940 isn't asking for a handout. It's a logical, legal step to get the compensation you are owed for your actual level of disability. Your inability to work is the final piece of the puzzle, and this form is how you place it.

Don't just send in the form and hope. That's what everyone else does.

You're going to do it differently. You're going to build a case so strong, so well-documented, and so clearly "schedular" that you answer every question before it's even asked. You're going to hand the rater a "fully developed" approval package.

Get that Nexus Letter. Call your VSO. Download that form. It's time to close the gap between your rating and your reality.

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