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Retired public safety officer. mostly insured thru medicare, but some insurance is from pension deduction. where does this go?

 
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LindaA
Expert Alumni

Retired public safety officer. mostly insured thru medicare, but some insurance is from pension deduction. where does this go?

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.) 

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