Wheeler v. United States

MEMORANDUM AND ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT

SAYLOR, District Judge.

This case involves the federal tax consequences of a decision by a local retirement board authorizing the retroactive payment of occupational-disability benefits to a retired firefighter. Generally speaking, ordinary retirement benefits are taxable, but occupational-disability benefits are not. The issue before the Court is whether the board’s retroactive reclassification of previously-paid benefits — originally paid as ordinary retirement benefits, but later reclassified as disability benefits — entitles the…