Your taxable amount of the pension should have been reduced by $3,000. Look at your Form 1040 Line 5a and 5b. The total amount of your pension should be on Line 5a and the taxable amount on Line 5b. Line 5b should be $3,000 less than Line 5a.
Also, PSO should have been entered on the line to left of 5a on the Form 1040.
You can preview your Form 1040 using the online editions -
Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.
