paws983
New Member

If the PSO deduction is not showing even after following all of the suggestions, what is next step? It worked in 2016.

 

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The PSO deduction is there.  Try following these steps:

Enter Form 1099-R exactly how it appears.  Answer Yes to the question, if you were Employed as a Public Safety Officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew).
Answer Yes, if the Pension Administrator Paid for Health Insurance.

Enter the total amount paid for the Health Insurance Payment Amount.  If needed, TurboTax will reduce the deduction to the $3,000 allowed.  

"To qualify for this deduction, the distribution must be made directly from the plan to the insurance provider.  You can only make this election for amounts that would otherwise be included in your income.  The amount excluded from your income can't be used to claim a medical expense deduction."

Click IRS Publication 575 for additional PSO deduction information.

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Nanaof1
New Member

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So, after you enter yes when asked if you are Public Safety Officer and then entered the cost of insurance, take a look at your 1040 under "Forms" and you will see that PSO is automatically entered on line 4c and the taxable amount on 4d has been reduced by your insurance cost. Used to be on line 16 but 1040 has changed just to confuse the issue 🙂