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How do I document on my 1040 form and my Calif 540 form my health care expenses deductions as a PSO from my eligible CalPers retirement plan?

 
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Level 10

How do I document on my 1040 form and my Calif 540 form my health care expenses deductions as a PSO from my eligible CalPers retirement plan?

If you enter the necessary information during the 1099-R interview, TurboTax will compute the deduction for insurance premiums for retired public safety officers (PSOs). To be eligible for the deduction, the insurance premiums must be made directly from the plan to the insurance provider (they'll be included in box 5 of the Form 1099-R).

  • Answer Yes when asked if you were employed as a public safety officer (PSO).
  • Answer Yes when asked if the plan administrator took out money from your pension to pay for health insurance.
  • Enter the amount of your pension paid directly for health insurance.

Once you complete the 1099-R interview you may preview your 1040 and scroll down to line 16. You'll see "PSO", the full amount of your pension on line 16a, and the taxable amount of your pension on line16b. (The taxable amount is the full amount less the smaller of $3,000 or the amount of health insurance premiums paid directly from your pension by the plan administrator.) 

Click the screenshots below to enlarge them for reference.

View solution in original post

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Highlighted
Level 10

How do I document on my 1040 form and my Calif 540 form my health care expenses deductions as a PSO from my eligible CalPers retirement plan?

If you enter the necessary information during the 1099-R interview, TurboTax will compute the deduction for insurance premiums for retired public safety officers (PSOs). To be eligible for the deduction, the insurance premiums must be made directly from the plan to the insurance provider (they'll be included in box 5 of the Form 1099-R).

  • Answer Yes when asked if you were employed as a public safety officer (PSO).
  • Answer Yes when asked if the plan administrator took out money from your pension to pay for health insurance.
  • Enter the amount of your pension paid directly for health insurance.

Once you complete the 1099-R interview you may preview your 1040 and scroll down to line 16. You'll see "PSO", the full amount of your pension on line 16a, and the taxable amount of your pension on line16b. (The taxable amount is the full amount less the smaller of $3,000 or the amount of health insurance premiums paid directly from your pension by the plan administrator.) 

Click the screenshots below to enlarge them for reference.

View solution in original post