Update on HELPS Tax Break for Retired Police/Fire

Health Insurance Payments

New IRS Forms for the 2025 tax year make this easier to claim…

The IPPFA has updated its Information Bulletin on the HELPS tax break for retired police and firefighters for premiums they pay for health insurance.  The new bulletin reflects the good news that it is now simpler to claim this reduction as of the release of the IRS Form 1040 for the 2025 tax-year.  On the updated form, the IRS has added a box to check (Box 2 on Line 5c) if a public safety retiree elects to take the HELPS reduction.  Previously the letters “PSO” had to be added to the form manually.

We believe that the addition of the special “box” on the IRS form for claiming this reduction is the result of a large increase in this credit being claimed by retired fire and police.  The IPPFA has been instrumental in getting out the word on this tax break over the past several years.  We have heard positive feedback from many Illinois retirees as well as many individuals and organizations across the country.  This includes a retired county fire association in Maryland, a retired police association in SW Florida, a regional police group in upstate New York and an active FDNY firefighter who is also a tax-preparer and specializes in first responder tax returns.

Please be sure your retired public safety members are aware that they 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.  And it is now easier to claim.

The updated bulletin is linked on this page and is always available at our website, ippfa.org under Bulletins.