JulieS
Employee Tax Expert

Retirement tax questions

Yes, you can still exclude the $3,000 paid under the HELPS Act.

 

But, there is a rule that says you must include in your income any reimbursement for expenses that you deducted or excluded from income. That is called a taxable recovery. 

 

So, you can exclude the HELPS payments, but if you are reimbursed for the same expense, you need to report it as a taxable recovery. 

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