Can I claim the $3000 Retired Public Safety Officer exclusion? i click yes on the form and didn't get the credit.

[fino1228]

HI, Can I claim the $3000 Retired Public Safety Officer exclusion? i click yes on the form and didn't get the credit. I also click yes to health insurance being deducted by the police pension and didn't received a credit.

[CarolC]

Yes, the $3,000 health insurance premium exclusion is available for Retired Public Safety Officers for qualified health insurance payments.  Try following these steps:

Enter Form 1099-R exactly how it appears.  Answer Yes to the question, if you were Employed as a Public Safety Officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew).

Answer Yes, if the Pension Administrator Paid for Health Insurance.

Enter the total amount paid for the Health Insurance Payment Amount.  If needed, TurboTax will reduce the deduction to the $3,000 allowed.  

"To qualify for this deduction, the distribution must be made directly from the plan to the insurance provider.  You can only make this election for amounts that would otherwise be included in your income.  The amount excluded from your income can't be used to claim a medical expense deduction."

Click IRS Publication 575 for additional PSO deduction information.

[chiggerlittlecom592]

I received a letter from the IRS saying I did not report my disability retirement income. Turbo tax listed the net amount as earned income and identified the the ISO amount on line 7. Why didn't turbo tax list these amounts online 16b as retirement income ss required by the IRS?  They claim I owe them over $8000.00 in taxes. What am I supposed to do?

[chiggerlittlecom592]

Never Mind. The ISO amount I refered to is PSO (Public Safety Officer health insurance payments) and I found the instruction for listing the disability pension on line 7 of the 1040  in publication 575 instructions. pages 5 and 6.

[billdockery]

Where 

[KrisD15]

On what tax form is it reported? Is it on your 1099-R? Are you a retired public safety officer? 

[txpyer01]

I noticed that TurboTax doubles my retired public safety officer exclusion.  I don't why this is happening.   I have double checked my numbers.  I continue to get an error in the federal tax worksheet, which keeps showing the double amount, thus impacting my taxes.  How can I resolve this?

[AmyC]

@txpyer01 It sounds like the form has a piece of data stuck. Follow these steps: 

1. Delete the form 1099-R:
   1. How to Delete 
   2. Log out of your return
   3. Try one or more of the following:
      • Don't use Internet Explorer.
      • Clear cache and cookies,
      • Sign in using a different browser.
      • Sign in using a different device.
   4. Log back into your return.
   5. Enter the form again.

[SanGib111]

Can someone tell me if you should enter the monthly health insurance premium amount or do you enter the YTD amount?

[RobertB4444]

The YTD amount should take care of it.

@SanGib111 

[SanGib111]

Thank you!

[brianc0610]

The law was updated so the pension administrator is no longer required to make the payment. Thus I can't get past this point in the software,  as I make the payment myself 

[AmyC]

If you have a 1099-R, there should be numbers to enter. You will not need to claim the $3000 deduction if you do not have taxable income. You can enter the payment in medical expenses. 

[brianc0610]

There are no numbers as my pension plan does not pay the insurance, I do and I do have taxable income.

[BillM223]

Do you have taxable PENSION income (i.e., an amount on line 5b of the 1040). If so, in the 1099-R interview after the initial pages, you will be asked if your pension is from being a LEO, and if yes, did you make a payment on a health insurance premium, and if yes again, how much?

This amount will appear as the difference between 5a and 5b, and PSO will appear on line 5a.

Does this match what you are seeing?