Public safety officer insurance exclusion

[maryspears]

Can I use my medicare premiums off my SSA-1099 as an insurance exclusion for my Public Safety Officer??

[Bsch4477]

Yes, Medicare qualifies for the exclusion. 

[Bsch4477]

• Yes, Medicare qualifies for the exclusion. 

[dmertz]

[Edited] This exclusion applies only to distributions from a qualified retirement retirement plan subject to Section 402 of the tax code.  Payments for Medicare Part B or Part D can be treated as the payments for such insurance whether or not they are paid out of pocket or paid with withholding from your Social Security payments.  Medicare Part B payment can be claimed as an itemized medical deduction if you itemize deductions on Schedule A, but you must exclude from that deduction the amount used for the exclusion.

[Bsch4477]

I assume that the poster is asking about the $3,000 medical insurance premium exclusion from his qualified pension income as a public safety officer. He can use his Medicare premium payments for that exclusion but if he itemizes he would have to deduct that amount from what he claims on Sch A for his Medicare premium expense. 

[dmertz]

I think I misunderstood the question.  I'll modify my response.

[sgt119]

if I’m claiming the $3000 exclusion for Healthcare, I can use that against the Social Security/Medicare cost every month and how do I send Medicare the $3000?

[Bsch4477]

You don’t exclude anything from Medicare. Simply exclude the cost from your retirement income when you report your 1099-R. You can only exclude what you paid up to a maximum of $3,000 for premiums for you, your spouse and dependents. 

[sgt119]

I’m sorry, but I’m still unclear as pulling out the $3000 from my 457 account requires the amount of money sent directly to your healthcare provider to offset your payments. So what am I asking is can I use the $3000 to offset the Medicare cost that Medicare charges you separate from the Medicare advantage program. At my state, the Medicare advantage plan for retired first responders doesn’t really cost anything and you’re only real cost is what the Medicare administration charges you every month

[Bsch4477]

• The HELPS Retirees Improvement Act of 2022 eliminated the requirement that premiums be paid directly to the insurance provider. 
• Eligible PSOs can exclude the smaller of $3,000 or the amount of their insurance premiums from their gross income. 

[sgt119]

I show hr 7203 for 2022 did not pass

[Bsch4477]

https://itap1.for.irs.gov/owda/0/resource/Commentary_Files_Redirect_ITA/en-US/help/SaftyOf.html