Did you know premiums no longer have to be deducted from retiree's pension check? Re: Retired Public safety Officer Exclusion - PSO Exclusion - Retiree Health Exclusion up to $3000

[karleneolesuk]

How to update locked questions that have 'new' updated info? For example, this is locked as 'solved' when in fact as of 2023 there is new information about this topic.

Solved: aka Retired Public Safety Officer Exclusion - PSO Exclusion - Retiree Health Exclusion up to...

Did you know premiums no longer have to be deducted from retiree's pension check? And if not, an attestation must be attached to tax return? How will this done in ProSeries?

See Online >> What Public Pensions Should Know About the Healthcare Enhancement for Local Public Safety ...

specifically: 

How did the SECURE Act 2.0 modify HELPS? 

Section 328 of the SECURE Act 2.0, now Division T of Public Law 117-328, modified the direct payment requirement under HELPS by making it optional and created an alternative to the direct payment method, namely allowing the retirement plan to make the distribution to the retired public safety officer. The retiree could then make the premium payment to the provider and remain eligible for the tax exclusion. This change is effective for distributions made after the date of enactment of the SECURE Act 2.0, which was December 29, 2022.
 
The SECURE Act 2.0 also provided that, in cases where the distribution is made to the retiree, the retiree must include with their tax return an attestation that the amount sought to be excluded from the pension distribution does not exceed the amount paid by the employee for qualified health insurance premiums for the taxable year. "

[abctax55]

You don't.  That info was correct WHEN that thread was active.  That's why looking at the dates is important.

New Year = New rules  = a new thread.

[PATAX]

@abctax55 👍 To you and Heidi's Friend.🐶🐕

[karleneolesuk]

Thank you, I understand that concept, but that doesn't answer my question as to how ProSeries will handle the new information for this particular topic or how I can alert others that I learned new information about a closed topic? I suppose as you say just creating a new threat as I just did. As far as I understand, aside from the attestation idea the mathematical calculation to the credit is the same. For example, older example shows that it was simply "The taxable amount should be reported on Form 1040 or 1040-SR, line 5b. Also, retirees should write “PSO” (for public safety officer) next to the appropriate line where the taxable amount is reported." I assume input goes on 1099-R Worksheet under Insurance where there is a line for "Amount of qualified insurance premiums paid and subtracted from an eligible public safety officer's distribution." report the health (up to $3,000). How do you do a client attestation for ProSeries tax software? Or is this letter we keep in our client file as documentation in our office?

Healthcare Enhancement for Local Public Safety Officers (HELPS) - IAFF

[abctax55]

@PATAX 

Woof, woof, woof woof woof says Juno.

(thank you, give Heidi a cookie)

[abctax55]

The credit hasn't changed; who is qualified to take it has.  It's up to the preparer to analyze/determine whether said client is allowed to take it.  

It's unlikely PS (or any software) will provide an 'attestation' statement.