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.
Yes, the $3,000 health insurance premium exclusion is available for Retired Public Safety Officers for qualified health insurance payments. Try following these steps:
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?
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.
On what tax form is it reported? Is it on your 1099-R? Are you a retired public safety officer?
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?
@txpyer01 It sounds like the form has a piece of data stuck. Follow these steps:
Can someone tell me if you should enter the monthly health insurance premium amount or do you enter the YTD amount?
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
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.
There are no numbers as my pension plan does not pay the insurance, I do and I do have taxable income.
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?
I do have a taxable income which is in box 2a, however there is nothing in 5 at all. I pay my health insurance on my own with the monies from my pension through the California exchange. I did get the question if I am a Police Officer, but as mentioned in your last post the software only allows for entry if the administrator made the payments. The new law allows for the taxpayer to make the payment.
"the software only allows for entry if the administrator made the payments. " No, I did not say that. If I did, please tell me where and I will correct it.
The updated law allows, as you note, that the payment be made by the pension recipient.
You say that you got the police officer question. How about the one after it, asking if you made a payment to an insurance company? Did you see that one?
Thanks for your help Bill.
So that question comes up, but it says, " Did your Pension Administrator Pay for Health Care?
If I answer yes, I can enter the $3000, however it would not be true as they did not.
If i answer , " no money wasn't taken out to pay for health insurance", then it bypasses the credit altogether.
Brian
You are correct, the screen on the desktop product still says that (I'll check the Online product in a minute). Assume that it reads: "Did you or the pension administrator take money out from the pension...blahblahblah"
That is how you get the $3k deduction/exclusion (sorry, I have to be picky about terminology).
This is how you get TurboTax to give you a correct tax return.