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Yes, if you are an eligible retired public safety officer, you can deduct up to $3,000 for the premiums paid for health insurance coverage if they are deducted directly from your retirement pay. In TurboTax, after you enter the 1099-R information, you can indicate that you were a public safety officer and indicate the amount that was deducted for the health insurance.
TT program needs to be updated. The questions prompted only address if the health insurance premiums are paid by the pension plan administrator. IRS Publication 575 now states this is no longer the case, and retired public safety officers can now claim the deduction if they pay the provider of the health plan themselves. The only way to get "PSO" on line 5B is to state that the pension plan administrator withheld money and paid the premium. For retired public safety officers on Social Security and having their Medicare premium deducted from their Social Security, this is not correct. There should be more follow up questions or options to address this now that the IRS law has changed. The program is still using the same question format that was in place before the new IRS change
@PW14 The question asks if you or the pension administrator took money out for health care insurance.
This is the actual statement from the TurboTax program when you have indicated you are a PSO -
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