Retired first responders can save money through tax deductions

(WIFR) – The Illinois Public Pension Fund Association is encouraging retired first responders to save money on their taxes with the Healthcare Enhancement for Local Public Safety Retirees Act.

The HELPS Retiree Act allows retired police officers, firefighters and emergency medical responders to reduce their taxable retirement income by excluding health insurance premiums.

This could reduce taxable income for health insurance premiums by up to $3,000 per calendar year.

“Any premium paid for health, accident or long-term care insurance is eligible for the credit,” said IPPFA President James McNamee. “Previously, the premium was required to be deducted from the retiree’s pension check to qualify for the HELPS credit, but that is no longer the case. Now more than ever, our retired heroes should ensure they take advantage of the HELPS credit.”

The deduction must be claimed on line 5B of each individual’s personal tax form 1040. It does not appear on the annual Form 1099R sent by the pension or pension fund.

It is recommended to consult a tax advisor to properly file the claim.

Further information can be found on the IPPFA website.

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