Medical Discount

[Christian]

A new client came in today advising that her husband who is a retired deputy sheriff is entitled to a $3,000 reduction  in his retirement pension for amounts he pays for medical insurance. Not having any retired public servants I was not aware of this benefit. On prior returns the benefit is denoted  as PSO to the right of his stated pension benefit which is shown on line 5a with line 5b being reduced by $3,000. Does anyone have a clue where this is dealt with in the ATX software ?    

[MarlonH]

On the 1099R input, at the very bottom of the page, there's a box that says "Check box to exclude ins premiums for retired ...", and then enter the amount in the field on the same line.

[Hahn1040]

on the 1099R input screen : At the bottom there are check boxes:  "Check the box to exclude Ins premiums for retired public safety officers. (PSO) and enter qualified amount".  $3,000

be sure to reduce the medical insurance premiums by $3,000 if you are using medical deductions

[Possi]

And, in order to reduce the taxable amount of the pension by $3000, he/she must have paid for the insurance directly from the pension. 

[Christian]

Sad to say I need to scan down on these 1099-R forms. My client list is pretty static and little changes which puts me in a habit of being a tad bit complacent along with being an old coot. Thanks all. Possi that's a valid point I'll need to ask her about .

[Christian]

This is ,of course, the VRS pension wherein the individual purchases his or her health insurance through VRS. I have seen the premiums shown on the VRS forms but never had this to come up most likely since the ones I dealt with were not connected to law enforcement.