Public Safety Officers health insurance tax deduction

[Brainstrom]

I have a retired Fire fighter who is eligible for a $3000.00 tax deduction for Health Insurance premiums. No form was given, just a letter from the State of Washington Department of Retirement Systems. Does anyone have an idea of where to enter this information in ProSeries ??

Thanks in advance

[Camp1040]

Schedule A, Medical Expenses.

[rbynaker]

On the 1099-R Wks if you scroll down you should be able to enter it in the Insurance section.  "PSO" should appear on 1040 line 5 if it's done right.

[dascpa · Accepted solution]

Other answer is incorrect.  Form 1099-R, insurance section below Line 19, "Amount of qualified insurance premiums paid subtracted from an eligible retired public safety officer's distribution."  The max is $3,000.  When you put it in the 1040 will subtract $3,000 from taxable retirement and put PSO next to it on page 1 of 1040.

[Brainstrom]

Thank you I do see that!!!

Learned something new today😃😋

[qbteachmt]

"who is eligible for a $3000.00 tax deduction for Health Insurance premiums"

It's not a deduction for a premium paid. It's an exclusion from income.

"you can elect to exclude from income distributions made from an eligible retirement plan that are used to pay the premiums for accident or health insurance or long-term care insurance. The premiums can be for coverage for you, your spouse, or dependents. The distribution must be made directly from the plan to the insurance provider. You can exclude from income the smaller of the amount of the insurance premiums or $3,000. You can only make this election for amounts that would otherwise be included in your income. The amount excluded from your income can't be used to claim a medical expense deduction."

[Camp1040]

@Brainstrom  Sorry for the bad info, that's what happens sometimes when you shoot form the hip, and with a not so good hip I should know better.

[msheck88]

so if it's from a pension that is in an annuity, it does not qualify, correct?  As I have other PSO's that do get that pension amount reduction but not the one that has an IRA annuity as a pension.

[qbteachmt]

The problem with updating a topic that is a year, or more, old...is that the tax regulations change, even from year to year. I believe PSO health had a pretty significant change. Have you gotten updated on it?

[msheck88]

obviously not - I will continue that research as this was not helpful.

[qbteachmt]

You always benefit from checking on Current and updated info.

Here is a current topic, for instance:

https://accountants.intuit.com/community/proseries-tax-discussions/discussion/did-you-know-premiums-...

And you should always check IRS resources.