Can I input the medical insurance cost that is deducted monthly prior to me receiving my monthly retirement amount? The annual cost is not on 1099-R. I have other proof.

[fglv]

My other proof is a statement from the retirement office listing the total actual monthly retirement benefit amount; the medical insurance cost deduction;  and the total monthly retirement amount balance received for each month...  Also, can I input my retirement pension as a disability pension since I have a written letter from my employer stating it is an approved disability pension, however on the 1099-R it is not marked as a disability pension? My retirement is from a public safety employer, Corrections. Thank you for your answers...

[fglv]

Thank you, however the IRS contacted me for an additional tax amount for 2014 since I did input the medical insurance amount deducted monthly from monthly pension amount... I answered YES to the Turbo Tax program question that a medical insurance amount is deducted from my pension prior to receiving the monthly pension amount and then entered the monthly deducted medical insurance amount...  The proof is a statement from the retirement office listing the total actual monthly retirement benefit amount; the medical insurance cost deduction;  and the total monthly retirement amount balance received for each month...  Since it is not on the 1099-R... I also answered YES when asked by the Turbo Tax program if the pension is a public safety program since I retired from State Corrections... Please explain to me... Thanks again for all your help...

[ToddL]

Did you provide the IRS with proof of the payroll deductions for medical insurance? It is unusual for them to assess additional tax over a disagreement on medical insurance premiums.

[ToddL · Accepted solution]

Yes, you can claim medical insurance costs paid (deducted monthly) prior to receiving monthly  retirement payments. 

Amount paid for medical insurance do not have to be included on your Form 1099-R, as long as you have other documentation that they were paid (e.g. pay stubs).

"Disability pensions" are treated the same as "non-disability" pensions for tax purposes - both are taxable income. You should report your pension income exactly as it is shown on the Form 1099-R you received.

Regarding your status, as a public safety employee, the following two posts discuss this subject in more detail. My interpretation of the IRS position is that public safety employees must have duties that are "outward facing", i.e. toward the general public. 

Public Safety Employee?

Defending Public Safety Employees’ Retirement Act

[fglv]

Thank you, however the IRS contacted me for an additional tax amount for the tax year 2014 because I did input the medical insurance amount deducted monthly from my retirement pension... I did so because the Turbo Tax program asks if there is a medical insurance amount deducted from the pension prior to receiving the pension amount. My proof is a statement from the retirement office listing the total actual monthly retirement benefit amount; the medical insurance cost deduction;  and the total monthly retirement amount balance received for each month... I also answered YES to the Turbo Tax program that my pension is a public safety pension due to me retiring from State Corrections... Please explain to me... Thanks again for all your help...

[fglv]

OK thanks for your info... I thought that being a State Corrections employee having "Care, Custody and Control" of inmates qualified since we also have the early retirement age available to us because of this factor...

[ToddL]

Actually, some states may allow you to benefit from any "public safety employee" tax benefits. I could only speak to the IRS and federal definitions and laws. Were you in a union? They could probably answer this for your state.

[fglv]

Ok Thanks, Yes I am currently in a retirees Union... I will email them the question...