PSO EXCLUSION

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TAXPAYER RETIRED FROM STATE OF MARYLAND AND THEN AGAIN FROM CITY OF BALTIMORE. HE IS ELIGIBLE FOR THE PSO EXCLUSION. CAN HE TAKE IT ON BOTH OR JUST ON ONE?

ProSeries Basic

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ehammondcpaAnswer

Level 4

received three letters (1 from state for him) and one each from city

Are you referring to the health insurance exclusion of $3000 or the pension exclusion of $15000?Each spouse is eligible for both exclusions. If they are between 55 and 65, they are eligible for a $15000 pension exclusion. After they are 65, they are eligible for the regular pension exclusion. The $3000 health insurance is available regardless of age, is limited to $3000 up to the amount paid for health insurance through that pension.

abctax55

Level 15

It's Sunday morning (as least on the Left Coast), so maybe don't yell at us?

Was he a PSO?

HumanKind... Be Both

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lyndaj0331Author

Level 5

Sorry - wasn't yelling - type in caps on returns - habit.

Yes, he is a PSO

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ehammondcpa

Level 4

First, make sure he is in the right age range. Then, he can take the exclusion up to the dollar limit, but it's not an exclusion that is for each pension. There is a dollar limit. Yes he can take it for either or both, but not more than the limit.