Important Tax Information for Retired Local Public Safety Officers

Important Tax Information for Retired Public Safety Officers

If you are a retired public safety officer, you may be able to exclude a portion of your health insurance premiums from federal income taxes.

Beginning with the 2007 tax year, the Health Enhancement for Local Public (H.E.L.P.) Safety Retirees Act, a provision of the Pension Protection Act of 2006, allows eligible retired public safety officers to exclude up to $3,000 per year from their retirement income used for qualified health insurance premiums or long-term care insurance premiums. Premiums covering yourself as well as your spouse and/or dependents are eligible for this exclusion.

Your 1099-R form will show the amount of health insurance premiums VRS deducted from your monthly retirement benefit in 2007, less any health insurance credit you may have received.

To find out whether you are eligible for benefits under the H.E.L.P. Retirees Act, consult a tax advisor or read the IRS Form 1040 Instructions for 2007. IRS Publication 575 also provides tax information concerning retirement and annuity income.