1099R question

[Art]

Retired public safety officer has health insurance premiums withheld from his retirement pay that qualify for reducing the taxable amount of his distribution. However, the state issued 1099R shows the full amount as taxable and refuses to issue a correct form. The instructions for line 16a & b of the 1040 provide that you can make the correction and enter “PSO” next to the amount on line 16b. Question-has anyone tried this either with a paper return or e-filed? Did you have it later questioned by IRS when the 1099R amount did not match the 1040? I would appreciated your feedback. Thanks.

[taxxcpa]

Haven't tried it, but don't expect problem

Retired public safety officer has health insurance premiums withheld from his retirement pay that qualify for reducing the taxable amount of his distribution. However, the state issued 1099R shows the full amount as taxable and refuses to issue a correct form. The instructions for line 16a & b of the 1040 provide that you can make the correction and enter “PSO” next to the amount on line 16b. Question-has anyone tried this either with a paper return or e-filed? Did you have it later questioned by IRS when the 1099R amount did not match the 1040? I would appreciated your feedback. Thanks.

I've tested it on my software by entering $ 1 for the premium. The taxable pension is then reduced on the 1040 by $ 1 and PSO is automatically entered.
Since this would be in accordance with IRS instructions, I see no reason why it would be questioned and it would seem to be one of the least likely areas for cheating on taxes.

[Burke]

Has anyone tried this either with a paper return or e-filed? Did you have it later questioned by IRS when the 1099R amount did not match the 1040? I would appreciated your feedback. Thanks.

I think this is the first year for this deduction, is is not?

[DaveO]

See the PPA 2006 Post

I didn't search the threads before I sarted a new one on this topic.