Retired public safety officers' health insurance premiums should be excluded from income on Form 1040 with a notation of PSO. How I do this?
On the 1099 screen, along the top of the screen, click the link Special Tax Treatments to open the 1099-R Special Tax Treatment screen. In the Public Safety Officers area is a data entry field for Insurance Premiums. Enter accident insurance, health insurance, or long term care insurance for retired public service officers. Up to $3,000 can be excluded from income.
If an entry is made in this field, the following line of Form 1040 displays the tax literal "PSO" next to it:
- line 5b starting in Drake20
- line 4d in Drake19
- line 4b in Drake18
- line 16b in Drake17 and prior
Public service officers include policemen and firemen.