Where is $3,000 health insurance premium exclusion related to the Pension Protection Act of 2006 entered for public safety officials? TIA!

[IntuitRebecca]

Hi there,

You can enter that on the 1099-R screen. Select the "Other Information" section along the top, and scroll down a bit until you see this field:

- Rebecca

[gfpstaxes]

I have a client who was a firefighter. Here's the situation:

1) He's getting a pensions from that job, but no health insurance premiums are being paid out of that pension.

2) However he also worked for the TX Highways dept and insurance premiums were paid out of that pension.

Even though it's not the related pension that is paying his health insurance premiums, can he make use of that credit because he was a Public Safety Officer?

[George4Tacks]

Are the payments being made pre tax or post tax?

[gfpstaxes]

It's part of his taxable pension income.

[qbteachmt]

Pub 575:

"you can elect to exclude
from income distributions made from your eligible retire-
ment plan that are used to pay the premiums for accident
or health insurance or long-term care insurance. The pre-
miums can be for coverage for you, your spouse, or de-
pendents. The distribution must be made directly from the
plan to the insurance provider."

So, no. Doesn't qualify.

[qbteachmt · Accepted solution]

Ooh, here's a nice pdf:

https://www.socxfbi.org/common/Uploaded%20files/Membership/TaxDeductionForPSOs.pdf

"The distribution must be from a retirement plan maintained by the
employer from which the taxpayer retired as a public safety officer and
cannot be from some other retirement plan."

https://www.irs.gov/pub/irs-pdf/p721.pdf

Go to "Distributions Used To Pay Insurance
Premiums for Public Safety Officers"

[gfpstaxes]

Thank you. That certainly clears it up.