Retired Public Safety Officer Exemption

[sh56pso]

Secure Act 2.0 amended the tax code so that the pension administrator no longer must directly pay retiree health insurance premiums from a public safety officer pension.  How do PSO retirees who directly pay health insurance premiums access the $3000 exemption beginning in TY2023?

[tagteam]

https://frs.fl.gov/forms/PSO-Notice.pdf

[DoninGA · Accepted solution]

The section for entering a Form 1099-R is not yet set up for the new requirement for PSO health insurance exclusion but you can still use it for the exclusion.

After completing the Form 1099-R you will be asked a series of questions.  You need to select that the money came from employment as a PSO, that money was taken out to pay for health insurance and then enter the amount that you paid, not to exceed $3,000.

This assumes that your Form 1099-R did not have the health insurance payment already deducted from box 2a of the 1099-R and it did not have the insurance payment entered in box 5 of the 1099-R.

The TurboTax program will exclude the amount of health insurance you reported as being paid from the taxable amount shown on Line 5b of the Form 1040 and will enter PSO on Line 5a.

[mlinsky4941]

Public Service Officer has no bearing on the question.  My question concerns where officer health insurance premiums are entered for a sub S corporation?