I retired in 2007, originally I had CRSC and apparently deselected it at some point. Last year I was told I had to submit an entire new package to get approved. I did this around the middle of last year and it was approved at 90%, at which time they gave me a nice back pay check. They also said that I was not currently enrolled in CRSC. I was told because I had deselected it in the past and deselected it I had to wait until open season to elect CRSC which is December. I am currently waiting for my election letter and was curious once I elect it will there be a timeline and will I receive any other backpay? The backpay obviously didn't cover last year, or the first few months of this year. Also, can you submit an addendum to last years taxes paid?
CRSC ELECTION
- Thread starter 1Whitmoyer
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I assume you have a 20 year retirement? 90% CRSC might net you more than 100% VA via concurrent receipt. Though I would be worried about the backpay check. Don't spend it all just yet. Since you can't get concurrent receipt of VA pay and CRSC at the same time you may find yourself owing near the amount of the backpay check from an overpayment.
Run the numbers and see if 90% nets you more since its tax free than 100% VA amount though its not actually the VA money that's taxed. Its your pension that taxed that you are reducing your taxable income.
To answer your question you should be able to amend up to the last 3 years now if the CRSC goes back that far. That is as far pack as you can go by law.
I was in a similar situation. I elected CRSC. Once I did my concurrent receipt stopped before CRSC started DFAS audited my account. This took a while. They eventually started paying me CRSC after about 7 or 8 months. I went without any DOD pay during this time. Eventually after I made a congressional inquiry I was paid for the months they stopped my pay completely and conducted an audit. The reasoning for the audit… DFAS said it was due to the VA owning me a little over 2k.
You can amend your taxes. I chose not to as it just didn’t seem to make sense for one year because paying someone was going to cost more than what I would get back and doing it myself would have taken more time than I felt like it was worth.
You can amend your taxes. I chose not to as it just didn’t seem to make sense for one year because paying someone was going to cost more than what I would get back and doing it myself would have taken more time than I felt like it was worth.
Are you saying you will not get you VA or your pension from DFAS? This is odd and something I have not heard before, as a matter of fact to qualify for CRSC I believe you need to be at least 50% disabled which is or was the cutoff for concurrent receipt. I was under the impression the 90% CRSC would just make that amount of my pension tax free, and have zero effect on my VA, since one comes from DFAS and one from the VA. A friend of mine gets 3 checks; 100% CRSC(that amount I think it $2500, tax free), 100% VA(around $4000) and a third check for the remaining amount of his pension.
your VA comp comes from the VA not DFAS. You can get three deposits but they won’t equal anymore than 100 percent VA comp and your longevity pay. What you state for CRSC is the rules for CRDP or concurrent receipt. When a regular retiree gets CRSC it just makes their longevity pension tax free. The way it all works out in the end does work out to 3 deposits but again it is never by law greater than your VA comp and longevity pay.
It doesn’t have an impact on your VA pay. But DFAS has to audit your pay to swap you from one program to the other. When this happens they may not pay you any of your pension. Also known as your retirement, your concurrent receipt, your CRSC. Your VA pay is still paid.
My situation is probably similar to your friends. I got concurrent receipt when I retired and VA comp. I applied for CRSC and elected it. DFAS audited my account and stopped my pension for a while. They eventually paid me retro pay. In the end my 2500 pension just became tax free and I still get my VA comp. I retired as an E8 over 20
It doesn’t have an impact on your VA pay. But DFAS has to audit your pay to swap you from one program to the other. When this happens they may not pay you any of your pension. Also known as your retirement, your concurrent receipt, your CRSC. Your VA pay is still paid.
My situation is probably similar to your friends. I got concurrent receipt when I retired and VA comp. I applied for CRSC and elected it. DFAS audited my account and stopped my pension for a while. They eventually paid me retro pay. In the end my 2500 pension just became tax free and I still get my VA comp. I retired as an E8 over 20
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I think we are saying the same thing. I understand it will never be more than the total of longevity pension and 100% VA disability combined. it will basically make that much, whatever the CRSC %, of my longevity pension tax free. My question is even though I received an initial back pay last year when I submitted they wouldn't actually place me into CRSC until the open season because I had had it many years ago. Will I receive another back pay check for the months from last year leading up to the open season election?
If they have already paid you out they won’t retro pay you anything for those months. They will retro pay you for months they stop your pay. So if you elect CRSC in January and they stop your pay starting January they will retro pay you January to whatever month they hold your pay. But they wont go back and say oh shit he paid taxes on his pension when he could have been in CRSC. That’s between you and the IRS. I asked the same question for 4 months of my pay when I retired. DFAS would not do anything about the taxes I had paid on my CRDP of January 2023 to April of 2023 before I switched to CRSC. I was not subjected to open season due to being a first time initial enrollee.
My point about the pay stoppage is a lot of people don’t realize DFAS can stop your pay while they audit your account to ensure you are being paid correctly. They also ensure you have been paid correctly by the VA. That was the reason DFAS gave me after I got so pissed off after 8 months of no pay. I received a letter response saying the VA owed me $2076 and due to this discovery during their audit while switching me from CRDP to CRSC my pay was stopped to prevent an under or over payment. Once the VA paid me that 2076, DFAS released about 8 months of CRSC to me. They did start my CRSC payments once they identified the issue with the VA.
My point about the pay stoppage is a lot of people don’t realize DFAS can stop your pay while they audit your account to ensure you are being paid correctly. They also ensure you have been paid correctly by the VA. That was the reason DFAS gave me after I got so pissed off after 8 months of no pay. I received a letter response saying the VA owed me $2076 and due to this discovery during their audit while switching me from CRDP to CRSC my pay was stopped to prevent an under or over payment. Once the VA paid me that 2076, DFAS released about 8 months of CRSC to me. They did start my CRSC payments once they identified the issue with the VA.
Repost:
Good day all, and happy new year (almost). I have studied alot of the available documents at DFAS and others. There doesn't seem to be simple answer to a question I often get. Please help with the following, I think, simple scenario (Hypothetical):
- Regular retired 20+ years (not medically) = $5000
- 100% VA Disability Rating: $4000
- 90% CRSC rated: $2215
Disregarding associated taxes (state, fica, etc.): I am assuming: $5000-$2215(CRSC)= $2785 Retirement remainder (taxable DFAS), $2215 from CRSC (non taxable DFAS) = $5000 DFAS paycheck, + VA Disability (100%) $4000 = $9000 total (roughly)
I appreciate the help.
Good day all, and happy new year (almost). I have studied alot of the available documents at DFAS and others. There doesn't seem to be simple answer to a question I often get. Please help with the following, I think, simple scenario (Hypothetical):
- Regular retired 20+ years (not medically) = $5000
- 100% VA Disability Rating: $4000
- 90% CRSC rated: $2215
Disregarding associated taxes (state, fica, etc.): I am assuming: $5000-$2215(CRSC)= $2785 Retirement remainder (taxable DFAS), $2215 from CRSC (non taxable DFAS) = $5000 DFAS paycheck, + VA Disability (100%) $4000 = $9000 total (roughly)
I appreciate the help.