PSO income deduction

Piecesof8 · ‎April 26, 2020

After entering the info on the 1099R including the insurance premiums paid in box 5 I follow the prompts and answer yes as a PSO then enter the $3000 allowance it causes an error during review showing that $6000 has been claimed on line 26d. Does this mean that I should put $0 for the PSO allowance? How do I know that I have received the appropriate tax allowance? Is this a glitch where TT is adding the allowance from both places. I've spent hours trying to figure this out.

macuser_22 · ‎April 26, 2020

26d of what form? If you deduct $3,000 directly from income you cannot deduct it again as a medical expense.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

dmertz · ‎April 26, 2020

That would be line 26d of TurboTax's 1099-R Summary.

The result implies that you have entered the $3,000 PSO exclusion twice, during the entry of two different Forms 1099-R. You are only allowed a total of $3,000 of PSO exclusion among all of your Form 1099-R entries, and only those from retirement plans provided by the PSO employer.

If you are married filing jointly, both of you are retired public safety officers and both health insurance paid from retirement distributions, make sure that you have not allocated both spouse's Forms 1099-R to the same spouse.