I entered a 1099 R form from my retirement plan. Box 5 does not contain insurance payments. I am now on Medicare. My plan administrator did not pay for my insurance. I paid Medicare, Medigap, and Drug Plan. I answered all questions regarding the 1099 and that I was a police officer. I wasn't offered a box to include the PSO exemption.
I ran across an inquiry from the 2023 taxes where the TP was advised as an alternative to report the $3,000 exemption in this manner:
You can make an adjusting entry to income as follows:
1. From the Federal menu in TurboTax find Wages and Income
2. Find Less Common Income
3. Choose Miscellaneous Income, 1099-A, 1099-C
4. Choose Other Reportable Income
5. Enter a description of the entry and the adjustment as a negative number
I did this, and my taxable income was adjusted, but there is no PSO Exemption notation anywhere on the tax form except on Sch 1, where the —$3,000 is found. The notation is usually found on Line 5B and written at the bottom of the tax form.
Because I completed my taxes using the alternative method, will this suffice? Will I have to worry about it not being done correctly and the IRS kicks it back?
Thanks
There is a better and proper way to enter the $3,000 Health deduction for retired PSOs.
In TurboTax Online, please follow these steps:
Thank you Minh, for your answer.
I have Turbo Tax desktop. Will that make a difference? I deleted the form and re-entered it hoping to get those questions again about whether money was paid for my insurance. It didn't work. The questions only asked if I received the money as a public safety officer, nothing about what I've paid for insurance.
However, no money was paid for my insurance since I am on Medicare. I pay my own premiums. So, answering yes wouldn't be true. Is it necessary for me to say yes they paid in order to place the $3000 exemption in the box?
I deleted my previous 1099R, saved the return and restarted my PC. I then entered everything from my 1099 R form as instructed by Minh. I answered the questions afterwards and was able to place the $3000 exemption in the appropriate area. I guess I was too literal. The question does ask if YOU or the plan administrator paid insurance premiums. I justed wanted to do an update on my situation. Thanks.