CRSC eligibility: do you qualify?

To qualify for Combat-Related Special Compensation you must (1) be a military retiree entitled to retired pay, (2) be receiving VA disability compensation with a retired-pay waiver, and (3) have at least one VA-rated disability rated 10% or higher that is combat-related. No Purple Heart is required.

The three preliminary requirements

Before any combat-related category even matters, you have to clear three gates. CRSC eligibility is set by federal law (10 U.S.C. § 1413a), and all three of these have to be true:

• You are a retiree (retired status). This includes a regular 20-year (longevity) retirement, a Chapter 61 medical retirement — even with fewer than 20 years of service — and members on the Temporary Disability Retired List (TDRL). If you separated without retiring, CRSC does not apply.
• You are currently entitled to military retired pay. CRSC restores money tied to that retired pay, so you have to be entitled to it in the first place.
• You receive VA disability compensation and waive retired pay to get it. Most retirees with a VA rating give up (waive) an equal dollar amount of retired pay to receive tax-free VA compensation. CRSC is designed to give back part of what that waiver took — which is why the waiver has to exist for CRSC to pay.

One important note for the Reserve and National Guard: “gray area” retirees — those who have completed qualifying service but are not yet drawing retired pay — generally are not eligible for CRSC until they are actually eligible to receive retired pay, usually at age 60, unless they were medically retired. Being entitled to a future pension is not the same as currently receiving retired pay.

The four combat-related categories (plus Purple Heart)

Once you clear the three gates, at least one of your VA-rated disabilities has to be combat-related. The law recognizes four categories, plus the Purple Heart path. Here is each one in plain language:

A condition qualifies only if the event that caused it fits one of these categories and your records prove it. A diagnosis never “automatically qualifies” — the board approves what the paper documents, not the label on a rating.

Chapter 61 vs 20-year vs Reserve

Chapter 61 (medical) retirees. If you were medically retired — even with fewer than 20 years — you can qualify for CRSC, provided you meet the three preliminary requirements and have a combat-related rated condition. The path has a few extra details, which we cover on the Chapter 61 CRSC page.

20-year (longevity) retirees. Most 20-year retirees with a VA rating are already receiving Concurrent Retirement and Disability Pay (CRDP). You generally choose CRSC or CRDP each year, whichever pays you more — and because CRSC is tax-free, it often wins even when the gross figure looks similar.

Reserve and Guard retirees. Qualifying Reserve and Guard retirees can be eligible once they are actually receiving (or eligible to receive) retired pay. Gray-area retirees generally wait until that point unless they were medically retired.

How CRSC is calculated

CRSC is not a flat bonus. It is paid using the VA compensation rate tables based on the combat-related percentage your branch board approves — which can be different from (and usually lower than) your overall VA rating, because the board only counts the conditions it finds combat-related. Then it is capped at the amount of retired pay you waived. So your CRSC payment is the lesser of (a) the dollar value of your approved combat-related percentage and (b) the retired pay you gave up.

Here are the 2026 monthly VA rates for a veteran with no dependents (effective December 1, 2025):

CRSC is tax-free. That is the big distinction from CRDP, which is taxable as retired pay. For a side-by-side breakdown of the two and how to tell which pays you more, see CRSC vs CRDP.

Not sure? Two ways to find out

You do not have to guess. There are two fast, no-pressure ways to see where you stand:

• Take the 30-second check. Our quick eligibility quiz walks you through the preliminary requirements and combat-related categories in under a minute.
• Book a free consult. A free 15-minute review gets you a straight, experience-based read on your situation, vet to vet — including an honest answer on whether a packet is worth your money.

If you decide to move forward, we can build the whole thing for you — see CRSC packet preparation — or just help you complete the form itself on the DD Form 2860 help page.

Frequently asked questions

Is CRSC only for combat injuries?

No. CRSC covers four combat-related categories — armed conflict, hazardous service, conditions simulating war, and instrumentality of war — plus any injury for which a Purple Heart was awarded. A condition does not have to come from a firefight to qualify; it qualifies if the event that caused it fits one of those categories and your records prove the link.

Do medical (Chapter 61) retirees qualify?

Yes. Chapter 61 medical retirees can qualify for CRSC, including those retired with fewer than 20 years of service, as long as they are entitled to retired pay, receive VA disability compensation with a retired-pay waiver, and have at least one VA-rated disability that is combat-related.

Is CRSC taxable?

No. CRSC is paid tax-free. That is one of the key differences between CRSC and CRDP, which is taxable as retired pay.

Do I need a Purple Heart?

No. A Purple Heart is only one of the qualifying paths. Most CRSC awards are granted under the other four categories — armed conflict, hazardous service, conditions simulating war, and instrumentality of war — and no Purple Heart is required.