What is Combat-Related Special Compensation?
CRSC is a tax-free monthly payment that restores part or all of the military retired pay you waive to receive VA disability compensation, but only for disabilities that are combat-related, such as those from armed conflict, hazardous duty, or an instrumentality of war.
CRSC equals the lesser of the VA compensation attributable to your combat-related disabilities and the amount of retired pay you waived. It effectively gives back the retired pay you lost to the VA waiver, limited to the combat-related portion.
Can I get both CRSC and CRDP?
You cannot receive both at the same time. Each year you may choose whichever is greater. Concurrent Retirement and Disability Pay, CRDP, restores retired pay for all disabilities at 50 percent or higher, while CRSC covers only combat-related disabilities but is tax-free.
No. CRSC is tax-free, which is one of its advantages over regular retired pay. To qualify you must be a military retiree with a combat-related VA-rated disability and have waived retired pay to receive VA compensation.