How do i take the healthcare credit on 1040 form how do i enter the healthcare credit on fgorm1040 r

[mhr3876]

how do i take the healthcare credit for firefighters on form 1040

[JohnW152]

I believe you're referring to the new provision of the law that allows eligible retired public safety officers to exclude up to $3,000 from their taxable income to pay for health insurance premiums.

If that's the case, then, to claim the exclusion:

1. Select Tax Home in the left pane
2. On the Hi, let's keep working on your taxes! screen, select the dropdown to the right of Income & Expenses
3. Select Start, Pick up where you left off, Review/Edit or Work on other income, as appropriate
4. On the Your income and expenses screen, scroll down and select the dropdown to the right of Retirement Plans and Social Security
5. Select  Start or Revisit to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
6. Answer  Yes on the Did you get a 1099-R in 2023? Page. (If you wind up on the Review your 1099-R info screen, select Review to the right on the relevant item.)
7. When you're entering your Form 1099-R information from an eligible retirement plan in TurboTax Online, you'll come to the Do any of these situations apply to you? screen. 
8. Select the box to the left of This money was from being a public safety officer, then select Continue
9. Later, you'll come to the Did the Pension Administrator Pay for Health Insurance? screen.  Answer appropriately, then select Continue
10. On the next screen, you'll be asked to enter how much of your pension the plan administrator paid directly for health insurance

If this isn't what you're referring to, feel free to post back.

According to Insurance premiums for retired public safety officers in IRS Publication 17:

Eligible retired public safety officers can exclude from income up to $3,000 of distributions from their eligible retirement plan that is paid directly to them and is used to pay for health insurance premiums.

Only the retiree can claim the exclusion, not their spouse. The qualified health insurance premiums have to be paid directly to the insurer.  The premiums can be used for you, your spouse, or any dependents. 

Distributions must be from an eligible plan, which includes any of the following:

•     Qualified trust
•     Section 403(a) plan
•     Section 403(b) annuity, or
•     Section 457(b) plan

[Shaun5052]

Looking for a little more clarification on the $3k 457b exclusion as a NJ firefighter approaching retirement:

I have to pay retiree contributions (approx $7k) directly to my city for healthcare. Can I self certify on my tax return that I will take a yearly $3k 457b disbursement & apply that directly to my contributions?

We are required to pay the employer directly. I have no way to pay Aetna or our benefits manager (Connor Strong). Is the $3k disbursement still tax exempt even though it goes to me & then I write a check to the employer? Could I attempt to have Nationwide send the $3k directly to my former employer to show a paper trail?

Thank You in advance