PSO Exemption Not Prompted in TT 2024

Forum|Forum|1 year ago
March 19, 2025
1 reply
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I entered a 1099 R form from my retirement plan. Box 5 does not contain insurance payments. I am now on Medicare. My plan administrator did not pay for my insurance. I paid Medicare, Medigap, and Drug Plan. I answered all questions regarding the 1099 and that I was a police officer. I wasn't offered a box to include the PSO exemption.

I ran across an inquiry from the 2023 taxes where the TP was advised as an alternative to report the $3,000 exemption in this manner:

You can make an adjusting entry to income as follows:

1. From the Federal menu in TurboTax find Wages and Income

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter a description of the entry and the adjustment as a negative number

I did this, and my taxable income was adjusted, but there is no PSO Exemption notation anywhere on the tax form except on Sch 1, where the —$3,000 is found. The notation is usually found on Line 5B and written at the bottom of the tax form.

Because I completed my taxes using the alternative method, will this suffice? Will I have to worry about it not being done correctly and the IRS kicks it back?

Thanks

MinhT1

There is a better and proper way to enter the $3,000 Health deduction for retired PSOs.

In TurboTax Online, please follow these steps:

After you have entered your form 1099-R, continue the questionnaire until you arrive at a page titled Do any of these situations apply to you?
Put a check mark next to This money is from being a Public Safety Officer and click Continue
On the next page, click on the box Yes, money was taken out to pay for Health Insurance
On the next page, enter an amount up to $3,000 and click Continue
The amount will be excluded from taxation.

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jwillinAuthor

Thank you Minh, for your answer.

I have Turbo Tax desktop. Will that make a difference? I deleted the form and re-entered it hoping to get those questions again about whether money was paid for my insurance. It didn't work. The questions only asked if I received the money as a public safety officer, nothing about what I've paid for insurance.

However, no money was paid for my insurance since I am on Medicare. I pay my own premiums. So, answering yes wouldn't be true. Is it necessary for me to say yes they paid in order to place the $3000 exemption in the box?

jwillinAuthor

I deleted my previous 1099R, saved the return and restarted my PC. I then entered everything from my 1099 R form as instructed by Minh. I answered the questions afterwards and was able to place the $3000 exemption in the appropriate area. I guess I was too literal. The question does ask if YOU or the plan administrator paid insurance premiums. I justed wanted to do an update on my situation. Thanks.