Combat Related Special Compensation (CRSC)

[Kewamc]

I was awarded CRSC by the Army in September 2024. It was effective in September 2022. My Army retired pay was reduced by the CRSC for the last 3 months of 2024 and that shows up on my DFAS 1099-R. DFAS does not amend any 1099R's. I understand that I can maybe send in amended 1040's for 2022, 2023 and 2024 indicating that the CRSC portion of my Army retired pay was not taxable during that time. When I called Turbo Tax's live help desk, she said there's nothing I can do. I now disagree and would like to know what I should do.

[MaryK4]

@Kewamc Can you clarify the issue?  Do you need to know how to amend the returns, or show the adjustment for the CRSC)? 

[Kewamc]

In reply to your query:

1. Is it OK to amend old tax returns for a CRSC adjustment.

2. Yes, how do I do the amendment?

[MaryK4 · Accepted solution]

Yes, you can amend your 2022-2023 tax returns if the CRSC was included on you 1099-R and reported as income.  

See How do I amend my federal tax return for a prior year?  When you amend, you can go back to the 1099-R entry and look for the screen after entry that asks if the taxable amount in Box 2 is correct and enter the amount with the CRSC subtracted.  

@Kewamc