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February 16, 2023
Question

Public Safety Officer & 1099s

  • February 16, 2023
  • 1 reply
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I am a retired federal Public Safety Officer (PSO)and am having trouble with my two (2) 1099s.  The current instructions for this part of the TT program needs further clarification.

First, I enter my CSA1099-R (pension/annuity) info into TT, checking the boxes to indicated that some of the earnings are from employment as a Public Safety Officer, and that over $5,000 was taken out of my paycheck for medical insurance.   The program automatically sets aside $3,000 of the insurance as exempt.

 

But, when I enter info from my 1099-R for my Thrift Savings Plan (TSP) account, the TTax program again asks if any of the RMD in the TSP distribution  was from earnings as a Public Safety Officer.  So I answer YES because 5% of all my earnings as a PSO were invested in the federal TSP, which is a 401-K program.  However,when I check the YES box, my return fails the REVIEW check.  By checking YES, the program adds another $3,000 into the exempt category.  This makes the total exemption $6,000, but only $3,000 is allowed by IRS.

So, I have to answer that question as NO in order to pass the review.  It took me quite a long time to figure this out.

Since some of the TSP was actually from earnings as a PSO, it would be nice to have that part of TT rewritten for clarification. 

 

    1 reply

    February 16, 2023

    Thank you for your comments.  You can proceed with your return by checking No when entering your TSP Form 1099-R, without it causing any problems.     

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