IRS Publication 575 specifies my requirements. Under insurance premiums for retired PSO, it advises "...reduce the otherwise taxable amount of your pension (mine is ZERO)...by the amount excluded. ($3000.00) The amount shown in box 2a of form 1099-R doesn't reflect this exclusion. Report your total distribution on Form 1040, 1040-SR or 1040-NR, line 5a. Report the taxable amount on Form 1040, 1040-SR, or 1040-NR, line 5b (mine would be ZERO). Enter ""PSO"" next to the appropriate line on which you reported the taxable amount (my taxable amount is ZERO). If you are retired on disability and reporting your disability pension on Form 1040, 1040-SR, or 1040-NR, line 1a, include only the taxable amount (mine is ZERO) on that line and enter ""PSO" and the amount excluded on the dotted line next to the applicable line. "
My 1099-R box 1= $40059; box 2a = $0; box 4 and 5 =$0 and box 7 = 3
