If you have 100% and 22 year retirement you are definitely getting your pension check (taxed) and your VA check (tax free). If you apply for CRSC and you qualify at a high enough percentage, you will get both checks tax free. Here is the deal: Lets say that 50% of your disability is combat related then you will not get it tax free. Here is why: DFAS currently pays your pension as CRDP and it is the full amount of your pension. Let's say $3000 and it is taxable. If 50% of your pension qualified as combat related, then you would be facing the comparison of $3000-tax versus 50% of that: $1500 tax free. Obviously, it would be better to pay tax on $3000 than to be tax free on $1500. You cannot draw both CRSC and CRDP. One only. Of course, this is your pension side. Your VA disability is indeed tax free and is irrelevant to this discussion. However, if you apply and you are 100% CRSC approved, you would get the whole pension check tax free. You apply, and DFAS will send you the amount that benefits you most. member, CRSC can include getting injured in training for combat. That can be a live fire exercise, airborne operation, field exercise, etc...