Hi and welcome to our site!
The issue is that you received payment from the civil service annuity in 2014 - but paid back in 2015.
So these transactions
are reported for different tax periods.
When payment is included into taxable income
- then when later you PAY that amount back - that classified as REPAYMENT.
If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. Or, if the amount you repaid is more than $3,000, you may be able to take a credit
against your tax for the year in which you repaid it.
You will find information about HOW to claim a deduction
or a credit for the repayment in IRS
publication 525 -
see page 34 fro details and examples.
So - on your 2014 tax return
- you will report the full amount paid to you and all taxes withheld will be credited toward your total tax liability
On your 2015 tax return you will report either deduction or credit or the repayment of a previously taxable income.
So - effectively - that will eliminate double taxation
of the same income.
Let me know if you need any help with reporting