Taxed Income Refund

From: Jerry Conley <jcrev@ncn.net>
Subject: Taxed Income Refund
Date: Wed, 28 Oct 1998 15:52:12 -0600

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I think I know the answer to this question, but can always hope.

Six years ago my son opted out of the military after 18 years. They gave
him a lump sum settlement of about 80k. He had to pay both state and Fed
income taxes on the full amount. Since then he joined the National Guard
and has satisfied requirements and became vested for a retirement at age
65. When he begins to draw that retirement they will reduce his monthly
entitlement by enough to pay back the lump sum distribution he received
upon leaving the Army early. Is there a way to claim a tax refund based
upon the amount taken in one tax year versus the payback over an extended
period of time? The greatest factor would be the difference in tax brackets.

Thanks for any advice you may be able to give.

Jerry

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