A 1099-R for a Public Safety Officer may or may not need a Simplified Method computation (aka Bogart), the same as any other pension. See Pensions, Form 1099-R, and the Simplified Method under Income in TXLNX.
The PSO 1099-R may also require a subtraction from Gross Income (box1) of the amount in box 5 up to $3,000. This is money that the PSO pensioner elects to exclude that was used to pay for accident or health or long-term care insurance.
The premiums can be for coverage for the taxpayer, the spouse, or dependents.
Any premiums in excess of the amount subtracted from taxable pension income can be used as a Schedule A medical deduction.
After 12/29/2022, the premiums no longer need to be paid directly from the retirement plan.
Following the death of the pensioner, the exclusion does not extend to the spouse or beneficiary.
If Bogarts is used, it will make the deduction, given the information requested.
If using Taxslayer, then, on the Calculate Screen, it will ask if you want to use the Simplified Methd and it will also ask if it was a Public Safety Officer Distribution. You may do one, the other, or both, depending on the circumstances.
