The only Publication 575 I could find on the IRS site was for 2022 returns not 2023. The law has since changed. If you go to IRS.gov website and look under section FORMS & INSTRUCTIONS, you can find "IRS 1040 (and 1040-SR) Instructions for tax year 2023". There you will find the new changes.
Look on page 28 under "Insurance Premiums for Retired Public Safety Officers". At the bottom of the first column, it states: "...or the distribution can be made to you to pay the provider of the accident or health plan......You can exclude from income the lesser of the amount of insurance premiums you paid or $3,000."
The second column tells you how to enter it on your 1040 on line 5b.
On TurboTax, go to forms and select your 1099R for your pension. This will show your 1099R as you entered it but, it will also have additional information and workspace. Under the workspace heading INSURANCE, you should find a question about how much your pension distributed to your healthcare. The answer is probably zero.
The second question is about how much your pension distributed for your HSA. Again, the answer is probably zero.
The third question is about how much you paid for qualified health insurance premiums. The answer is the actual amount you paid or $3,000, whichever is less. When you enter this amount, Turbo Tax will lower your taxable income by $3,000 or the amount you actually paid, whichever is less. You do not have to change the figures on your actual 1099-R. I hope this helps.
FYI- If you go to Virgina Congresswoman Abigail Spanberger's website and look for the January 2, 2023 news release, you can read the recent history for the change in the original 2006 HELPS law. Virginia Democratic Representative Abigal Spanberger and Ohio Republican Representative Steve Chabot introduced the bipartisan legislation in March 2022. The bill was signed into law by President Biden in late December 2022 to take effect for the 2023 Tax returns.
