CRSC: tax-free special compensation for combat-related disabilities
Military retirees whose compensable rating covers a combat-related disability may be eligible for a tax-free monthly payment, verify with your branch of service.
What makes CRSC different
Under 10 U.S.C. §1413a, CRSC pays a retiree the compensation attributable to combat-related disabilities, tax-free, up to the retired-pay offset. Three contrasts with CRDP matter: there is no 50% floor, so any compensable combat-related rating can qualify, which in practice means 10% or higher; it requires an application; and Chapter 61 medical retirees with fewer than 20 years are eligible.
The combat-related finding is not a VA decision. The veteran's branch of service reviews the application (DD Form 2860) and determines which disabilities are combat-related; DFAS then pays.
Choosing between CRSC and CRDP
A retiree cannot draw CRSC and CRDP at the same time. Retirees who qualify for both choose during an annual open season, and the better answer depends on the mix of combat-related and other ratings plus the tax treatment, since CRSC is tax-free and CRDP is regular retired pay.
Your branch of service decides the combat-related question and DFAS handles payment. Verify your own numbers with them; this page compares the doors, not anyone's outcome.
See it next to everything else your rating may open
The Benefits Explorer lists this program beside the rest of the federal set, and your state’s verified programs, keyed to your combined rating. Educational only. Every program is decided by the agency named on it.