Article: 50416
Overview
If you are a retired public safety officer, you may be eligible to exclude up to $3,000 annually from your taxable income for qualified health or long-term care insurance premiums. This deduction is entered directly on your 1099-R form within the software.
What Premiums Qualify?
You may be able to deduct:
- Health insurance premiums
- Accident insurance premiums
- Long-term care insurance premiums
Note: The premiums must be paid directly from your pension or retirement distribution to qualify.
How to Report
- Go to your Form 1099-R entry.
- At the bottom of the form, look for a link that reads: “This 1099-R has a special tax treatment.”
- Click the link to open the second page of the 1099-R.
- About halfway down the page, you will see a section labeled “Public Safety Officers.”
- Enter your eligible insurance premiums in the field labeled “Insurance Premiums.”
Example
- You are a retired firefighter, and your pension plan withholds $2,400 during the year to pay for your health insurance.
- On your 1099-R entry, you would enter $2,400 in the Insurance Premiums (Public Safety Officer) field.
- This amount will reduce your taxable income (up to the $3,000 annual maximum).
Additional Resources
For more details on the PSO insurance premium exclusion, see IRS guidance: https://www.irs.gov/retirement-plans/pension-and-annuity-income