Insurance premiums paid from retirement plan

[thomtax]

Client has following situation:
Information from the Texas Municipal Retirement System states: The Pension Protection Act of 2006 allows an eligible retired or disabled public safety officer to exclude from their income, payments made from an eligible retirement plan that are used to pay premiums for health insurance.

It also states that on the 1099R "In accordance with Internal Revenue Service instructions, the exclusion from income is not reflected in box 2a of your 2013 Form 1099-R."

I have checked Pub 575 and yes this is true, but it does not specify where to enter.

Does anyone know?

Thanks.

[Gene V]

It goes on line 16 (subtract the premium from line 16a to get your taxable amount for line 16b)
Next to the box 16a write PSO or next to line 16b according to the TheTaxBook page 3-3

[thomtax]

Thank you Gene. I called myself looking through TTB but did not find this.

Now if I can just figure out how to make the Drake software put this into an electronically filed return, I will be finished with it.

Thanks again.
LT

[Gene V]

Thank you Gene. I called myself looking through TTB but did not find this.

Now if I can just figure out how to make the Drake software put this into an electronically filed return, I will be finished with it.

Thanks again.
LT

Let me know when you figure it out, I'm thinking of switching to Drake next year. I know how to input on my software.

I have a copy of Drake for 2011

[ddoshan]

When entering pensions our software has an entry box where you input the amount that was paid for the insurance. It seems that most software would. Notice that the premium must be paid direct from the pension plan to the insurance provider.

[thomtax]

Let me know when you figure it out, I'm thinking of switching to Drake next year. I know how to input on my software.

I have a copy of Drake for 2011

I do not know for 2011, but I have to admit to looking over the obvious looking for the fine print. On the 1099R entry form, there is a line at the top of the page (in blue on my screen) that takes you to an additional input screen. There is a specific place for entering this on that page and it takes care of it.

LT

[Gene V]

Thanks Thomtax, I found it.