I am having the similar issue with entering proper PSO deductions. My Pension administrator deducted $1775 from my pension for my "secondary" or supplemental health insurance. I also pay for Medicare premiums which are deducted from by Social Security from my SS benefits. During the 2023 year, Social Security was deducting payments for Part B Premiums for the first half of the year. Then they stopped my SS benefits to audit my account and later in the year, SS paid my Medicare premiums by lump sum payment to Medicare. On the SSA-1099-SM form, they have several line items, one for amount ($1589) deducted from my SS benefits and another line item for the Deductions for Other Adjustments ($3,178.80, which is the lump sum payment for second half of year and to recover past due premiums they claim I owed). In all, Social Security deducted $4767.80 from my SS benefits to pay Medicare for Part B Premiums.
I have paid well above the $3,000 to meet the PSO full exclusion. With the change in law in December 2022, I should be able to enter the Medicare payments toward the PSO exclusion. There is a section to add the Medicare Part B Premiums deducted by SSA from my benefits. However when I enter the $1589 amount, the 1040 form does not truly count this amount towards the PSO exclusion. The other lump sum payment by Social Security for my Medicare health benefits is mute, because I would already reach the full exclusion with the $1775 Pension administrator deductions and the regular deductions totaling $1589 by SSA, which equals $3,364.
I have tried to go back to the Wages and Income section of TurboTax to edit the amount and nothing seems to flow properly down the line as I looked at subsequent pages of the return. Have you figured out how to handle your PSO deductions without issue? The responses I had read to your inquiry were not clear and I do not agree with entering numbers that do not correspond with the 1099 forms we receive. I am sure other retirees are having this type of situation and TurboTax experts should be addressing this properly.
