Tax tip for retired first responders

Earlier we wrote about tax provisions that could reduce federal taxes for those who had property losses during the 2017 and 2018 wildfires in California.

There is another federal tax program that can save retirees money. It applies to retired public safety officers, defined by the IRS as “law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew”. Basically, you don’t have to pay taxes on money from your retirement annuity that is used to buy health or long-term care insurance. The premiums, up to $3,000, can be for coverage for you, your spouse, or dependents.

Here are a few more details from IRS Publication 721 (page 18):

Publication 721, on page 1 and 2, also describes another benefit for federal firefighters and other public safety federal employees related to early distributions from a governmental plan, spousal benefits, and annuities received by the spouse, former spouse, or child of a public safety officer killed in the line of duty.

Thanks and a tip of the hat go out to Jim. Typos or errors, report them HERE.

Author: Bill Gabbert

After working full time in wildland fire for 33 years, he continues to learn, and strives to be a Student of Fire. View all posts by Bill Gabbert