How Do I Claim My HELPS Payments Tax Deduction?

To claim the HELPS insurance deduction payments on your tax return, you will need to know the full amount paid for the tax year.

TMRS mails letters in January to all retirees who have applied to have insurance premiums deducted from their annuity under the HELPS provision of the Pension Protection Act of 2006.  Your letter will show the amount that TMRS deducted from your annuity payments and paid directly to your insurance provider for the year.

The Pension Protection Act of 2006 allows you, if you are an eligible retired or disabled public safety officer, to exclude from your income, payments made from an eligible retirement plan that are used to pay premiums for accident, health, or long-term care insurance up to $3,000 per year.

In accordance with Internal Revenue Service (IRS) instructions, the exclusion from income is not reflected in box 2a of your Form 1099-R. Detailed instructions (pdf, 3 pages) on where to deduct this amount from income and how to note it on your 1040 or 1040A can be found on pages 5 and 6 of IRS Publication 575 Pension and Annuity Income (pdf, 43 pages).

More information about this exclusion and how to report it may be found in the instructions to the Forms 1040 (pdf — see page 25) and 1040A (pdf — see pages 27-28) which may be viewed or downloaded at the IRS website. 

HELPS Information flyer (pdf)