retired from hoody corp on june 30th of the current year after turning 65 in december of last year, he plans to travel around florida , including the tampa bay area with his wife who is 40 years old . On retirement. thomas receive a retirement allowance of 38,000 for his years of loyal service and help inflate the company profits. Thomas started his employment with hoody corp in 1992, determine the income tax consequences of the retiring allowance including any tax advice you would have for him in point form.