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First Responder Credit

The Gonz
Level 2

At one time there was some kind of credit for first responders, such as fire fighters, possibly some type sch A credit for Medicare or something. I believe it was for active not retired people. Does anyone recall it and if it's still available. I can't find any reference to it. Thanks

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abctax55
Level 15

From Lacerte's "Help" function:

Other Information Screen 13; Code 185 Enter the amount of health insurance premiums paid directly from a retired public safety officer’s qualified trust, 403(a) plan, 403(b) annuity, or section 457(b) plan, not to exceed $3,000. The amount entered is subtracted from the taxable amount of the pension. The literal ‘PSO’ prints to the left of the IRAs, pension, and annuities line on Form 1040. Section 845 of the Pension Protection Act of 2006 provides that an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), can elect to exclude from income distributions made after 2006 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 the officer, the officer’s spouse, or dependents. The distribution must be made directly from the plan to the insurance provider. The amount that can be excluded from income is the smaller of the amount of the insurance premiums or $3,000. The election can only be made for amounts that would otherwise be included in income. The amount excluded from income cannot be used to claim a medical expense deduction or the self-employed health insurance deduction.

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abctax55
Level 15

If medical insurance is paid via retirement, up to $ 3000 of pension distributions can be excluded.

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The Gonz
Level 2

Thanks for that answer. Can you tell me the code section that is under?

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abctax55
Level 15

Nope...I'll let you look it up.

I remember very few specific code sections.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches
abctax55
Level 15

From Lacerte's "Help" function:

Other Information Screen 13; Code 185 Enter the amount of health insurance premiums paid directly from a retired public safety officer’s qualified trust, 403(a) plan, 403(b) annuity, or section 457(b) plan, not to exceed $3,000. The amount entered is subtracted from the taxable amount of the pension. The literal ‘PSO’ prints to the left of the IRAs, pension, and annuities line on Form 1040. Section 845 of the Pension Protection Act of 2006 provides that an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), can elect to exclude from income distributions made after 2006 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 the officer, the officer’s spouse, or dependents. The distribution must be made directly from the plan to the insurance provider. The amount that can be excluded from income is the smaller of the amount of the insurance premiums or $3,000. The election can only be made for amounts that would otherwise be included in income. The amount excluded from income cannot be used to claim a medical expense deduction or the self-employed health insurance deduction.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches

View solution in original post

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The Gonz
Level 2

Thanks for that answer. Now I can look for that code section. I hadn't come across this in a few years.

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