VA CSRC Pay (a.k.a. CSRC VA) and 100% VA Disability FAQs
What is Combat Related Special Compensation (CRSC)?
Also known as CSRC VA, is benefit with significant tax advantages that compensates both disability and non-disability related military retirees with disabilities that were deemed to be as a result of combat-related service. CRSC essentially reduces a portion of the veteran’s taxable pension, and replaces it with a tax-free payment from the Department of Veterans Affairs (VA).
In order for the retiree’s disabilities to be deemed “combat-related” they must have been incurred as a direct result of one of the following:
-As a direct result of armed conflict
-While engaged in hazardous service
-In the performance of duties while under simulated conditions of war
-Through an instrumentality of war
Who qualifies for CRSC Pay?
Veterans who are receiving and/or entitled to military retired pay with a VA disability rating of at least 10% must file an application using form DD form 2860 with their branch of service in order to receive benefits. You must provide evidence that your disabilities are deemed to be combat-related. Veterans whose applications are approved must be willing to waive the CRSC compensation amount from their retired pay.
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Can I get back pay?
Yes, retroactive payments are authorized as far back as June 1, 2003, but will be limited to six years from the date the VA awarded compensation for the disability.
What is the benefit of being approved for CRSC?
The main benefit to the retiree is the conversion of a portion of the taxable military pension into a tax-free disability compensation benefit. This reduction in taxable income can have a heavy impact on military retirees, who often find themselves paying significantly higher local, state, and federal tax rates after their military transition.
Want to learn more about CRSC?
Check out the resources page of our website where we have links to additional information, including instructions on how to apply for CRSC.
If you still have questions or need help making important decisions, schedule a call with one of our advisors to make sure you’re getting the most out of your military retirement.
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USN(R) Trevor Maxwell, ChFC®, ChFEBC℠
Trevor Maxwell is a retired U.S. Navy veteran with over 20 years of experience in uniform. He had dedicated his post-military life to educating and empowering military and federal retirees on protecting the value of their pensions, maximizing their survivor benefits, managing their TSP after their retirement, and getting the most out of their federal and state benefits. He is a licensed Life Insurance Agent and Investment Advisor Representative and hold the Chartered Financial Consultant (ChFC®) and Chartered Federal Employee Benefits Consultant℠ professional designations.
Disclaimer: The views expressed by Trevor Maxwell and US VetWealth are for educational purposes only and do not constitute financial, tax, or legal advice. Scott is a licensed insurance professional offering financial services and products. Always consult with a qualified advisor before making financial decisions.
