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aka Retired Public Safety Officer Exclusion - PSO Exclusion - Retiree Health Exclusion up to $3000

AndyReynolds
Level 2

The Pension Protection Act of 2006 allows eligible public safety employees to exclude from Gross Pension Income $3000 representing retiree's health ins premiums. Instructions say the retiree must "reduce" the taxable amount on line 5b by the exclusion amount and enter "PSO"  (Public Safety Officer) next to that line - on Form 140 page 1.

How do you do this in Pro-Series - to print "PSO" next to Form 1040, page 1, line 5B?

 

 

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BobKamman
Level 15

Scroll down on the 1099-R worksheet and eventually you'll find where they hide the line for entering it.  The insurance has to be paid through withholding on the pension -- other insurance doesn't count.  

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2 Comments 2
BobKamman
Level 15

Scroll down on the 1099-R worksheet and eventually you'll find where they hide the line for entering it.  The insurance has to be paid through withholding on the pension -- other insurance doesn't count.  

AndyReynolds
Level 2

After a lot of searching I figured this out! 

1.) Pull up the 1099-R Worksheet...

2.) Scroll all the way down to Rollovers, then. Inherited IRA, the to INSURANCE.

Look at the 3rd (last) option -

"Amount of qualified insurance premiums paid and subtracted from an eligible  public safety officer's distribution." report the health (up to $3000)

This reduced the taxable amount by the taxable amount in box 2a of the 1099R on  Form 1040 line 5b AND ADDS THE EXCLUSION CODE PSO ...next to line 5b as instructed by the IRS