Springfield, IL-(effingham radio)-Thousands of retired first responders in Illinois and across the country can reduce their taxable income by up to $3,000 by taking advantage of federally recognized deductions.
The Illinois Public Pension Funds Association (IPPFA) is reminding retired public safety officers about the Health Care Enhancement for Local Public Service Retirees Act, or “HELPS” Retirees Act. The law allows retired law enforcement officers, firefighters, and emergency services personnel across the United States to lower their taxable pension income by excluding health insurance premiums. These retirees can reduce their taxable income by up to $3,000 on medical premiums paid during the calendar year.
IPPFA President James McNamee said, “We want to make sure that this opportunity is available to police, fire and EMS retirees in Illinois and across the country, especially in times of financial difficulty. I would like to make use of it,” he said. “Understanding this deduction can help these first responders plan and enjoy a more successful retirement.”
To qualify for the HELPS deduction, premiums must be deducted from another eligible government plan maintained by your employer, such as a retiree pension check or deferred compensation distribution, and sent directly to your healthcare provider or insurance company. I have. The $3,000 deduction will not appear on the annual 1099R form sent by your pension or retirement fund. Retirees should claim the deduction on the individual’s 1040 tax form on line 4B. Instructions for claiming deductions are contained in IRS Publication 575, page 6, General Information/Retired Public Safety Officials Premiums.
Claiming the deduction is not an easy task and pensioners are encouraged to consult with their taxpayers to properly claim. If health insurance premium payments are made from a deferred coverage plan, the plan administrator obtains the required information.
IPPFA was founded in 1985 as a non-profit organization with a mission to educate trustees of public pension funds. In 2009, IPPFA became the primary educational provider for trustees of Illinois’ public pension funds, whose members provide benefits to more than 40,000 active and retired firefighters and police officers with more than $18 billion in pension assets. is managing
