Need Help with CRSC

RonG said:
Are the 23.3 years (which is 23 yrs and 4 months) active duty?

The following would be needed...
Click to expand...

Answered via private message.

Ron
 
Hello All,


Trying to figure CRSC out....
2016-2018 H3 - ~4300
100% VA spouse and two kids in HS
20.3 years Ret.
80% CRSC

Thanks!
 
RonG said:
Are the 23.3 years (which is 23 yrs and 4 months) active duty?

The following would be needed to provide an estimate:


1. Type retirement (regular; disability; reserve)
2. DoD disability percentage/rate if applicable
3. Gross retired pay (before deductions) on recent DFAS RAS
4. Active duty years and months (reserve, divide total points by 360)
5. VA rating percentage and amount
6. CRSC approval percentage and effective date
7. Amount of retired pay, if any, left to be paid by DFAS after the VA offset (which is the amount of VA compensation)

Ron
Click to expand...
1. Regular Ret
2. No DoD disability
3. DFAS RAS $2242
4. 20 yrs 4 mos
5. 100% ~$3430
6. CRSC 80% 20 Sept 2018
7. ?
 
ArtyC said:
1. Regular Ret
2. No DoD disability
3. DFAS RAS $2242
4. 20 yrs 4 mos
5. 100% ~$3430
6. CRSC 80% 20 Sept 2018
7. ?
Click to expand...

Sorry, I was working another case simultaneously.

As a regular retiree, your CRSC will be at $1,816.25 + $65 = $1881.25 which is the CRSC rate for 80% spouse and 2 children under 18. See https://www.benefits.va.gov/compensation/resources_comp01.asp for 80% CRSC for number and category of dependents. The CRSC percentage mirrors the rates in the VA comp tables (with dependents as well if applicable)—regular retirements.

Since you are a regular retiree and have a VA rating at 50% or more, you are currently receiving all your retired pay thru CRDP plus your VA comp. With CRSC, you must waive retired pay dollar for dollar amount in the amount of VA comp received. CRSC will replace the waived retired pay at the approved percentage, 80% (1881.25) in your case. You will lose money accepting CRSC.

Of course, you also will receive your VA camp.

DFAS will initially pay you the higher of CRDP or CRSC. You can change it if you choose; the tax benefit would be a consideration.

The info in this post pertains to a regular (20 years AD) retiree.

Ron

Added:
See the following for info pertaining to potential amended tax returns: https://vetsbenefits.net/amended-tax-returns-due-to-retroactive-payment-of--t85091.html. Start with Update 5 October 2017.
 
Last edited:
RonG said:
Sorry, I was working another case simultaneously.

As a regular retiree, your CRSC will be at $1,816.25 + $65 = $1881.25 which is the CRSC rate for 80% spouse and 2 children under 18. See https://www.benefits.va.gov/compensation/resources_comp01.asp for 80% CRSC for number and category of dependents. The CRSC percentage mirrors the rates in the VA comp tables (with dependents as well if applicable)—regular retirements.

Since you are a regular retiree and have a VA rating at 50% or more, you are currently receiving all your retired pay thru CRDP plus your VA comp. With CRSC, you must waive retired pay dollar for dollar amount in the amount of VA comp received. CRSC will replace the waived retired pay at the approved percentage, 80% (1881.25) in your case. You will lose money accepting CRSC.

Of course, you also will receive your VA camp.

DFAS will initially pay you the higher of CRDP or CRSC. You can change it if you choose; the tax benefit would be a consideration.

The info in this post pertains to a regular (20 years AD) retiree.

Ron

Added:
See the following for info pertaining to potential amended tax returns: https://vetsbenefits.net/amended-tax-returns-due-to-retroactive-payment-of--t85091.html. Start with Update 5 October 2017.
Click to expand...

Okay,


Thanks Ron
 
Mr. Ron,

Is CRSC tax exempt from other forms of payments other than CRSC, e.g. If I had additional employment such as working for the Department of the Army as a Civilian?

ArtyC
 
ArtyC said:
Mr. Ron,

Is CRSC tax exempt from other forms of payments other than CRSC, e.g. If I had additional employment such as working for the Department of the Army as a Civilian?

ArtyC
Click to expand...
CRSC is never taxable. I have 100% CRSC and I am not required to report it on my tax return,

I have several other forms of income and they have no impact on my CRSC and vice versa.

Ron
 
RonG said:
CRSC is never taxable. I have 100% CRSC and I am not required to report it on my tax return,

I have several other forms of income and they have no impact on my CRSC and vice versa.

Ron
Click to expand...
Okay,

Thanks! So, in other words my other income, besides CRSC, will be tax exempt, right? I just want to ensure I am understanding this correctly...
 
ArtyC said:
Okay,

Thanks! So, in other words my other income, besides CRSC, will be tax exempt, right? I just want to ensure I am understanding this correctly...
Click to expand...
Hi,

I did not say that. I said, "I have several other forms of income and they have no impact on my CRSC and vice versa." That means that CRSC stands alone as being non-taxable...other income has no impact on the status of CRSC. Additionally, the fact that CRSC is non-taxable has no bearing on the taxability of other income that is normally taxable.

CRSC = Non-taxable
Pension from university = taxable
Salary for part-time job = taxable
added: VA compensation = non-taxable, but that is not due to my receipt of CRSC

Three of the four above pertain to me. I included the salary from part-time job to expand the example.

Good luck,
Ron
 
You must log in or register to reply here.
Top