After you have entered the Form 1099-R there will be a series of screens asking you questions, one of the screens will ask if you were a Public Safety Officer, answer Yes, Continuing on there will be another screen asking how much you paid for health insurance, enter the amount not to exceed $3,000
On the Form 1040 Line 5a will be entered PSO. On Line 5b your taxable amount will be reduced by the amount of health insurance you paid.
