Retirement Pay &
VA Compensation

Military retired pay and VA disability compensation are two different payments, and getting both can be confusing. This page explains how the VA waiver (offset) works and why most retirees don’t lose money when they get a VA rating, since more of their pay becomes tax-free. It shows when you can keep both in full through CRDP at 50% or higher, including TDIU and TERA retirees. It also explains how combat-related conditions can qualify for tax-free CRSC at any rating from 10%. A recent Supreme Court decision removed the old 6-year limit on CRSC back pay. You’ll also find rules for medical retirees (Chapter 61 and TDRL), Guard and Reserve retirees, taxes and refunds after a retroactive rating, and divorce and survivor benefits. It also covers how Social Security, federal jobs and other income fit in. Use the free estimator to enter your retired pay, VA rating, dependents and combat-related rating. It shows your monthly total, what’s tax-free, and whether CRDP or CRSC leaves you with more after taxes. Veterans Claims Education provides general information only and does not assist with or file claims; for help, contact a free VA-accredited representative.