Lecture on $3,000 Public Safety Officer Deduction

Introduction

• Speaker: Chris Barfield, Barfield Financial
• Focus: $3,000 Public Safety Officer Tax Deduction
• Audience: Retired Public Safety Officers

Key Points

Public Safety Officer Definition

• IRS term includes various roles:
  • Law enforcement (Federal, State, local)
  • Firefighters (Federal, State, local)
  • Medics (paramedics, ambulance, responders)
• Examples: police officers, FBI agents, firefighters, medics, etc.

Eligibility for Deduction

• Only for retired Public Safety Officers
• Deduct $3,000/year from tax returns
• Applies to health insurance premiums, not medical expenses

Premium Deduction Details

• Premiums must exceed $3,000 to claim full deduction
• Married couples who are both retired Public Safety Officers can each claim $3,000
• Example: Speaker's own health insurance premiums and deductions

Tax Reporting Instructions

• Report total distributions on line 5A
• Deduct $3,000 from reported income for tax purposes
• Write "PSO" on the tax line to indicate deduction use

Authority and Resources

• IRS Publication 721:
  • A tax guide for US Civil Service Retirement Benefits
  • Covers rules for retirees, including Public Safety Officer deductions
• Available resources on Barfield Financial website

Additional Details

• "Above the line" deduction, separate from itemized deductions
• TurboTax and CPA guidance
• Amend tax returns to claim missed deductions for previous years

Practical Advice

• Spread awareness of this benefit to other retirees
• Confirm all details with a CPA, especially regarding specifics like marital status and joint deductions

Conclusion

• Encouragement to use the deduction and file amended returns if needed
• Request for feedback on the video series