Retirement tax questions

When you enter your Form 1099-R, if you don't check the "IRA" box, you will see a question on the next screen asking if you are a Public Safety Officer. When you indicate that you are, on the next screen you can indicate that the distribution included health insurance premiums. Then on the next screen you can enter the amount paid for your premiums to get the $3,000 exemption from tax for your pension plan distributions. Your only other option to exclude the benefits would be to add a negative adjustment to income.

You can make an adjusting entry to income as follows:

1. From the Federal menu in TurboTax find Wages and Income 

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter a description of the entry and the adjustment as a negative number