Retired public Service Safety Officer

Question 1

Which federal program provides tax benefits for certain public safety officers?

Answer 1

The Public Safety Officers’ Benefits (PSOB) program.

Question 2

What is the maximum tax-free benefit amount for public safety officers who die in the line of duty?

Answer 2

$343,000 (as of 2023).

Question 3

Multiple Choice: Which of the following could reduce taxable income for retired public service safety officers? A) Health insurance premiums B) Investment income C) Rental income

Answer 3

A) Health insurance premiums

Question 4

Short Answer: How can retired public service safety officers utilize Health Savings Accounts (HSAs) for tax advantages?

Answer 4

They can contribute pre-tax income to HSAs for qualified medical expenses.

Question 5

True or False: Retired public service safety officers can deduct unreimbursed medical expenses on their federal tax returns.

Answer 5

True

Question 6

What tax benefit can retired public safety officers receive for long-term care insurance premiums?

Answer 6

They may deduct a portion of the premiums from their taxable income.

Question 7

Retired Public Safety Officers can take up to
$ ________ off taxable income for medical expenses including insurance, long term care insurance for self and dependents

Answer 7

$3000

Question 8

Retired Firefighter Jones receives Medicare.
How do you utilize the $3000 credit that Retired Public Safety Officers are afforded?

Answer 8

When entering his 1099-R reduce the taxable amount by Medicare expense and other medical expenses for himself, spouse and dependents up to $ 3000.
Report on “1099-R Nontaxable Income” reductions to taxable amounts due to
1) QCD’s
2) HSA’s
3) Retired Public Safety Officer

Form 1099-R Nontaxable Distributions is located in the Federal income section:
IRA/Pension Distrutions