CRSC vs CRDP calculation, non-medical retiree, 32 years in service

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ArmyChiefTech

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CRSC gurus,

I just retired from AD late last year. I was rated 100% VA (spouse and child dependent) and last week rated 100% CRSC. I know in the videos, they always use a medical disability rating, on top of VA and CRSC but in my case it is just VA and CRSC. My CRDP monthly pension is 5077 (after SBP, taxes and tricare) it is 4200 a month and my VA is 4100 a month. What will be the calculation for CRSC? I retired with 32 years of my LES but LOS percentage was at around 60 or 62.5 range because I did around 24 years active and the rest was NG and reserve time.

Thank you.
 
ArmyChiefTech said:
CRSC gurus,

I just retired from AD late last year. I was rated 100% VA (spouse and child dependent) and last week rated 100% CRSC. I know in the videos, they always use a medical disability rating, on top of VA and CRSC but in my case it is just VA and CRSC. My CRDP monthly pension is 5077 (after SBP, taxes and tricare) it is 4200 a month and my VA is 4100 a month. What will be the calculation for CRSC? I retired with 32 years of my LES but LOS percentage was at around 60 or 62.5 range because I did around 24 years active and the rest was NG and reserve time.

Thank you.
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@100% CRSC as an active duty retiree (regular retirement) your CRSC will be the same amount as the gross CRDP shown on page two your DFAS RAS.

It will be non taxable.

I have the same status ( regular retirement and 100% VA and 100% CRSC).

Ron
 
RonG,

I understand that my SBP will transfer over to CRSC if it is changed but what about my Tricare monthly payment? My monthly FITW withheld is 413.00. That will go away after the audit correct?

Louis
 
ArmyChiefTech said:
RonG,

I understand that my SBP will transfer over to CRSC if it is changed but what about my Tricare monthly payment? My monthly FITW withheld is 413.00. That will go away after the audit correct?

Louis
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Hello Louis,

I did not choose the SBP; however, it is my understanding too that it will transfer to the CRSC statement. Please note that when you begin receiving CRSC, DFAS will publish a CRSC statement on MyPay each month. Recommend monitoring that statement to ensure the deduction is made.

CRSC is non-taxable. There is no collection of taxes shown on the CRSC statement. Congrats!

I do not know about your TRICARE situation, except I have TRICARE FOR LIFE and do not pay anything.

Here is the TRICARE web page: https://www.tricare.mil/ <---LINK

Ron
 
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Addendum

Q: What happens to my Retired Pay if I switch to CRSC?
A: If you elect to receive CRSC, your retired pay will be offset by the full amount of your VA disability pay. You may still receive some retired pay if your retired pay exceeds your VA disability pay. Or you may not receive any retired pay at all if your VA award exceeds your retired pay. You will also begin to see an amount under “VA Waiver” on your Retiree Account Statement (RAS).

Please keep in mind if you switch to CRSC any allotments, Former Spouse deductions or garnishments may be suspended if there are not enough funds left to pay out of your retired pay. CRSC payments are subject to deductions for monthly SBP premiums or garnishments. Also, CRSC is non-taxable, so it is issued separately from your retired pay. You may begin to receive two separate payments from DFAS each month, one for retired pay (taxable) and one for CRSC (non-taxable).

Ron
 
RonG said:
Addendum

Q: What happens to my Retired Pay if I switch to CRSC?
A: If you elect to receive CRSC, your retired pay will be offset by the full amount of your VA disability pay. You may still receive some retired pay if your retired pay exceeds your VA disability pay. Or you may not receive any retired pay at all if your VA award exceeds your retired pay. You will also begin to see an amount under “VA Waiver” on your Retiree Account Statement (RAS).

Please keep in mind if you switch to CRSC any allotments, Former Spouse deductions or garnishments may be suspended if there are not enough funds left to pay out of your retired pay. CRSC payments are subject to deductions for monthly SBP premiums or garnishments. Also, CRSC is non-taxable, so it is issued separately from your retired pay. You may begin to receive two separate payments from DFAS each month, one for retired pay (taxable) and one for CRSC (non-taxable).

Ron
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Screenshot 2023-05-16 084208.png
I added the screenshot that shows my monthly tricare payout as an allotment. I was tricare for life and then recently went tricare select Again, thanks for your help. Also, since I was approved recently, does CRSC go into effect in a few months or the end of the year?
 
Screenshot 2023-05-16 084645.png
this is page 2 of my RAS
 
Hello @ArmyChiefTech

Since you did not have CRSC approved during the open season (i.e., January), you will be able to switch to CRSC immediately.

Previous taxes:
1. For current tax year: I seem to remember DFAS can correct/adjust the taxes for current year. If not, you should have a nice tax refund at end of year. Please report what happens in your case.

2. If your CRSC is retroactive to previous years, they are NOT going to go back and change the CRDP to CRSC. However, you can file amended tax returns for those years. I wrote an article on this several years ago. Let me know if you need a link. It is not on this site.

Ron
 
Please send me that tax link but I just started collecting Army retirement on 1 Oct 22 and already filed taxes for last year. Last year, I still was getting paid by Army AD, then Army retired and my current job. I also got solar on my home, so had a decent refund.
 
ArmyChiefTech said:
Please send me that tax link but I just started collecting Army retirement on 1 Oct 22 and already filed taxes for last year. Last year, I still was getting paid by Army AD, then Army retired and my current job. I also got solar on my home, so had a decent refund.
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I mentioned “amended returns”. You could reduce your taxable income for 2022 (a few months).

I will find the article and attach it here.

Ron
 
Amended returns due to retro CRSC.

I think I created the article around 2017. Among other things, amended returns can now be submitted electronically.

The link is within this thread : Veterans Benefits Network-CRSC 1040X <—-LINK

I am not a tax expert and I have not kept up with the changes.

The IRS addresses the amended returns issue as well.

Reportedly, the info helped some (I did not take a poll) and it worked for me.

Recommend a tax professional for complicated issues AND good luck in finding one having the expertise described here.

If you have only a couple of months, this process might not be worth the effort.

Ron
 
Thank you again sir for all your help.
 
RonG said:
@100% CRSC as an active duty retiree (regular retirement) your CRSC will be the same amount as the gross CRDP shown on page two your DFAS RAS.

It will be non taxable.

I have the same status ( regular retirement and 100% VA and 100% CRSC).

Ron
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Ron, I saw that my CRDP amount is $4100 but my pension from the Army is higher than $4100. So does that mean DFAS will determine that CRDP is the bigger amount regardless if I am taxed or will I also have CRSC for 4100 and then the difference from 4100 to my gross Army pension will be taxable? My current taxable income is 4,746.99
 
I ask because someone said CRSC is capped at around at a little more than 3k and said its based on rank and time in service.
 
ArmyChiefTech said:
Ron, I saw that my CRDP amount is $4100 but my pension from the Army is higher than $4100. So does that mean DFAS will determine that CRDP is the bigger amount regardless if I am taxed or will I also have CRSC for 4100 and then the difference from 4100 to my gross Army pension will be taxable? My current taxable income is 4,746.99
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Hello @ArmyChiefTech

CRDP allows concurrent receipt of VA comp and retired pay.

I am assuming you did not have a disability retirement.

CRDP will never be more than what the VA offset would be. If your retired pay was more than the VA amount, the excess would be regular retired pay included in the gross pay and you would receive CRDP for the “would-be” VA offset. Note: CRDP is also retired pay.

Based on the info available —your CRSC will probably be similar. Your CRSC= 4100 and the amount that exceeds the 4100 waiver will be paid on a DFAS RAS separately As retired pay.

Ron
cc: @Provis for info
 
RonG said:
Hello @ArmyChiefTech

CRDP allows concurrent receipt of VA comp and retired pay.

I am assuming you did not have a disability retirement.

CRDP will never be more than what the VA offset would be. If your retired pay was more than the VA amount, the excess would be regular retired pay included in the gross pay and you would receive CRDP for the “would-be” VA offset. Note: CRDP is also retired pay.

Based on the info available —your CRSC will probably be similar. Your CRSC= 4100 and the amount that exceeds the 4100 waiver will be paid on a DFAS RAS separately As retired pay.

Ron
cc: @Provis for info
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Tracking but will the DFAS RAS that is separate as retired pay (I am non-medical retired), will that part be taxable or not? I don't have any issue of having $800 monthly being taxable vs 4746.99.
 
ArmyChiefTech said:
Tracking but will the DFAS RAS that is separate as retired pay (I am non-medical retired), will that part be taxable or not? I don't have any issue of having $800 monthly being taxable vs 4746.99.
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It will be taxable.

Ron
 
I forgot to add if my SBP is taken out, I rather have it taken from the DFAS RAS than from CRSC, since that will lower that 800 to 480 a month.
 
Roger on the taxable response. Again, thanks Ron for your knowledge on this topic sir.
 
ArmyChiefTech said:
I forgot to add if my SBP is taken out, I rather have it taken from the DFAS RAS than from CRSC, since that will lower that 800 to 480 a month.
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I believe that if enough retired pay remains, it will be deducted from the retired pay.

Ron
 
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