Healthcare Enhancement for Local Public Safety Retirees Act (HELPS)

For retired law enforcement officers (LEOs) and firefighters, tax season brings a unique opportunity to lower taxable income thanks to the Healthcare Enhancement for Local Public Safety Retirees Act (HELPS). This tax break allows eligible retirees to deduct up to $3,000 from their taxable earnings for qualified medical insurance premiums.In this post, we’ll break down how the HELPS Act works, who qualifies, and how retirees can maximize this tax benefit in 2025.

What Is the HELPS Retiree Act?

The HELPS Retiree Act was designed to provide financial relief for retired public safety officers by allowing a tax-free deduction for medical insurance costs. This includes:

• Health insurance
• Accident insurance
• Long-term care insurance

Previously, to qualify for the deduction, retirees had to have their insurance premiums deducted directly from their pension payments. However, thanks to the Secure 2.0 Act, that requirement has been eliminated. Now, any eligible premium payments—regardless of the payment method—qualify for the tax break.

How to Claim the HELPS Tax Deduction

Although this tax break can reduce taxable income by up to $3,000, it does not appear on Form 1099-R, the tax form typically issued for pension distributions. Retirees must manually claim the deduction when filing their personal tax returns.

Steps to Claim

1. Keep records of insurance premium payments. Ensure you have receipts, bank statements, or other documentation proving you paid for qualified insurance.
2. File Form 1040 correctly. Report the deduction on Line 5B or any other relevant adjustment section in the tax form.
3. Consult a tax professional. While the deduction is straightforward, seeking professional tax advice can help ensure compliance and maximize benefits.

Who Is Eligible for the HELPS Deduction?

To qualify for the tax break, you must be:

✅ A retired public safety officer, including law enforcement officers and firefighters.
✅ Paying for qualified insurance coverage (health, accident, or long-term care).
✅ Reporting these expenses correctly on your tax return.

Why This Tax Benefit Matters

For retired public safety professionals, managing post-retirement expenses—including healthcare costs—is a major concern. The HELPS Act tax deduction effectively reduces taxable income, helping retirees save on taxes while covering essential medical expenses.

With the Secure 2.0 changes, the process is even easier. Now, retirees have more flexibility in how they pay their premiums while still qualifying for this tax-saving opportunity.

Final Thoughts

If you’re a retired law enforcement officer or firefighter, the HELPS Retiree Act can provide valuable tax relief. Don’t miss out on this deduction—make sure to claim it on your next tax return!

For personalized guidance, contact Bryan Wisda, CFP® with Almega Wealth Management, who is also a retired law enforcement officer, by calling 480-770-4700 or click here to schedule an Exploratory Call.