I just had a retired firefighter in today. He had a letter from his pension plan that said the Pension Protection Act of 2006 allowed a payment of up to $3000 from his pension directly to his health insurance provider which could be excluded from the taxable portion of his pension income. Next to line 16b the letters PSO print to denote his is a retired Public Safety Officer. If you have retired police, fire, rescue or ambulance workers you might want to double check with them on this. Here is a link to a chart on the IRS website.
