CRSC — Combat-Related Special Compensation (Tax-Free)
Combat-Related Special Compensation is a TAX-FREE monthly payment to combat-disabled retirees in addition to their full retirement pay. Replaces the dollar-for-dollar VA disability offset that historically reduced retirement pay. For combat-related disabilities (combat, hazardous service, conditions caused by an instrumentality of war, simulated war during training), retirees keep BOTH full retired pay + tax-free CRSC.
How to access
Restrictions
Apply via DD Form 2860 through your branch's CRSC office (not VA). Separate from CRDP (Concurrent Retirement and Disability Pay) — CRSC is tax-free but requires combat-relatedness; CRDP is taxable but covers any 50%+ rating regardless of combat connection. Retirees with both options choose the higher payout each year (DFAS handles the election). Rating mechanics live in TAPS:VA — this entry is the
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