In june 03 I was awarded CRSC rating of 50% for PTSD. I also received a 90% VA disability rating. I received a portion of my retirement pay tax free and all the VA pay non-taxable. Thiscontinued until the VA granted me a TDIU rating of 100% June 06 which in turn generated a CRSC rating of 100% which meant that I now received all my retirement and VA pay tax free. I was to receive the Temporary Individual Umployability until a decision was made by the VA on my request to increase my CRSC rating of 50%. The VA made a decision in Dec. 09 and granted me a 70% rating for PTSD. This 70% rating when added to other disabilities gave me an overall rating of 100% total and permanent. In January 2010 I received a letter requesting that I choose between CRSC and CRDP for my retirement pay. If I selected CRSC I would receive 70% of retired pay tax free and if I chose CRDP I would receive 100% of retirement pay but taxable. I opted for CRDP because it gave me all my retirment pay although taxable but still- a difference of about $1000 if I had selected CRSC. I just received an award letter a few days ago from the VA notifying me that a decision had been made and I was given a retroactive increased rating for my PTSD for 100% effective July 02. CRSC sent me a letter also notifying me that they had made a change to my PTSD rating and increased it to 100% effectivie June 03. Its time to file my taxes and I dont know quite what to do hence my use of this website. I tried to get DFAS to provide me a corrected 1099 for 2010 but no luck. The 1099r I have for 2010 states my retirement pay was taxable although it should not have been based on the decisions the VA and CRSC made retroactively changing the percentage for the PTSD and the dates. Do I file using the 1099 from DFAS and pay the tax on my retirement and then file as amendment using the VA and CRSC letters as justification for get taxes paid returned or am I at risk if I dont file the 2010 CRDP retirement pay I received . Does anyone have any similiar experiences? I want to do what is right and certainly stay away from any audits and penalities. DFAS would or could not help me the problem. Only have a few days to make the decision or file for an extenstion. Tks for any help.