1099-MISC for Retiree Medical Premiums Paid by Former Employer

[61359DRedmon]

• I retired in 2020.   My former employer pays premiums for retiree medical insurance, vision insurance and dental insurance for me and my family until I turn age 65.  They sent me a 1099-MISC for the "value" or premiums paid on my behalf in Box 3, Other Income. 
• Sec. 106 of the Code provides that gross income of an employee does not include employer provided coverage under an accident or health plan. 
• Rev. Rul 62-199 states that "amounts paid by the company under the plan as its share of the cost of providing hospital, medical and surgical insurance coverage for the retired employee are excludable from gross income for purposes of Sec. 106 of the IRC.   
• Rev. Rul 82-196, 182-2 CB 53 held that employer contributions to an accident or health plan that provides coverage for an employee or the employee's spouse and dependents before and after the employee's retirement and that also provides benefits for a deceased employee's surviving spouse and dependents are excludable from the gross income of the employee and the survivors under Sec. 106 of the Code.
• Rev. Rul 85-121 pertains to health benefits for a laid-off or terminated employee and held that "terminated employees who are receiving medical coverage under the Medical Plan pursuant to the Employer's severance plan are "employees" for purposes of sections 105 and 106 of the Code.  Employer contributions for medical coverage on behalf of the terminated employees are, therefore, excludable from the terminated employees' gross incomes under Sec. 106 of the Code.
• QUESTION:  Since the premiums paid by my former employer were reported to me on a Form 1099-MISC - how do I enter this data in  Turbo Tax without it increasing my taxable income (if, based on the items quoted above it is not taxable income to me)?   

[AmyC]

Two steps, enter it as income and then subtract it back out.

Step 1 To enter it as income:

You can enter it as other income. Follow these steps:

1. Log into your return
2. Federal
3. Click on Income
4. Scroll to the bottom section, Less Common Income
5. Select Miscellaneous income, 1099-A, 1099-C, start
6. Select Other Income
7. Did you receive other wages? Yes
8. Continue
9. Household employee? Continue
10. Sick or disability pay? Continue
11. Any other earned income or wages? Yes
12. Enter source of Other Earned Income
13. Select Other
14. Continue
15. Enter description 1099MISC box 3
16. Enter amount

Step 2 remove it from income

Go through all the same steps but changes at:

• description exempt income and state ruling
• amount enter negative amount

[61359DRedmon]

Thanks!    Do you agree that it shouldn't be taxable?   

Donna