FABF Website Admin / Saturday, February 1, 2025 / Categories: News & Events HELPS Federal Tax Break for Retired Fire and Paramedics Retired fire, EMS and law enforcement personnel may reduce their taxable earnings by up to $3,000 for medical insurance premiums paid during a calendar year. This is allowable under the Healthcare Enhancement for Local Public Safety Retirees Act, or the “HELPS” Retiree Act. Previously, there was a requirement that the premium had to be deducted from the retiree’s pension check to qualify for HELPS deduction. That is no longer the case following the 2022 adoption of the Secure 2.0 retirement law. Qualified premiums paid directly by annuitants for health, accident or long-term care insurance now qualify for the benefit. The $3,000 reduction does not appear on the annual 1099R form that is sent out by the Fund. The retiree must claim the reduction on his or her personal 1040 tax form on Line 5B or similar adjustment. Instructions on claiming the reduction are included on page six in 2023 version of IRS Publication 575. This page reference may change in 2024 or future editions. It is recommended that pensioners consult with their tax preparer to properly claim the reduction. The Fund cannot and does not provide tax or legal advice regarding the deductibility of medical insurance premiums. Tier II Wage Caps Effective for 2025 Social Security Update - January 5, 2025 Print 76