Unlocking Tax Savings for Retired First Responders: The HELPS Retiree Act Explained

Retired first responders in Illinois can now take advantage of significant tax savings thanks to the Healthcare Enhancement for Local Public Safety Retirees (HELPS) Act. This legislation allows these dedicated individuals to exclude a portion of their pension income from taxation, providing much-needed financial relief. The Illinois Public Pension Fund Association (IPPFA) is actively encouraging retired law enforcement officers, firefighters, and emergency services personnel to explore this valuable tax-saving opportunity.

Empowering Retired Heroes to Maximize Their Retirement Savings

Reducing Taxable Pension Income

The HELPS Retiree Act offers a unique opportunity for retired first responders to lower their taxable pension income. By excluding up to $3,000 in health insurance premiums from their taxable earnings, these individuals can potentially save a significant amount on their annual tax bill. This deduction applies to any premiums paid for health, accident, or long-term care insurance, providing a versatile and valuable benefit.Notably, the IPPFA has clarified that the previous requirement for the premium to be deducted directly from the retiree's pension check has been eliminated. This change means that more retired first responders can now take advantage of the HELPS credit, as they can claim the deduction on their personal 1040 tax form, regardless of how the premiums are paid.

Navigating the Tax Filing Process

To properly claim the HELPS credit, it is essential for retired first responders to consult with a tax preparer. The deduction must be reported on line 5B of the individual's 1040 tax form, as it does not appear on the annual 1099R form provided by the pension or retirement fund. By working with a tax professional, retirees can ensure that they are maximizing their tax savings and avoiding any potential pitfalls in the filing process.

Empowering Retired Heroes to Secure Their Financial Future

The IPPFA's efforts to promote the HELPS Retiree Act are a testament to their commitment to supporting the financial well-being of retired first responders. These dedicated individuals have sacrificed so much to protect and serve their communities, and the HELPS credit provides a well-deserved opportunity for them to retain more of their hard-earned pension income.By taking advantage of this tax-saving measure, retired law enforcement officers, firefighters, and emergency services personnel can free up additional funds to cover essential expenses, invest in their future, or simply enjoy a more comfortable retirement. The IPPFA's advocacy and guidance on the HELPS credit can make a significant difference in the lives of these retired heroes, empowering them to secure their financial future and enjoy the fruits of their lifelong service.