Question

Paul Casey retired from the U.S. Navy in 2013. He receives a military pension based on his years of service. On August 3, 2019, he received a determination of service-connected disability retroactive to 2013. Which of the following is true regarding Paul’s claim for a refund for taxes paid on his pension?

A. Paul cannot file a claim a refund for the taxes paid on his pension for any year

B. Under the special limitation period, Paul can file a claim for a refund for taxes paid on his pension for 2015 as long as he files the claim by August 3, 2020

C. Paul can file a claim for a refund for taxes paid on his pension for 2013 and 2014

D. Paul can only file a claim for a refund for taxes paid on his pension for 2018

Answer 1

• Generally, Paul can claim a refund for the taxes paid on his pension for 2016, 2017, and 2018.
• However, under the special limitation period, Paul can also file a claim for 2015 as long as he file the claim by August 3, 2020.
• Paul can't file a claim for 2013 and 2014 because those tax years began more than 5 years before the determination.

"Under the special limitation period, Paul can file a claim for a refund for taxes paid on his pension for 2015 as long as he files the claim by August 3, 2020" is true regarding Paul’s claim for a refund for taxes paid on his pension.

Answer is B. Under the special limitation period, Paul can file a claim for a refund for taxes paid on his pension for 2015 as long as he files the claim by August 3, 2020.