This post is not intended to be tax advice or an endorsement of TurboTax. Firefly Admin Inc. does not provide tax advice, and all participants and beneficiaries who receive a LOSAP benefit are strongly encouraged to consult with a qualified tax professional or Intuit (the company that produces TurboTax) regarding the preparation of your federal and state income tax return and the information provided in this post.
The information provided is based on our understanding of the TurboTax online software and is not guaranteed to be accurate. Firefly is not responsible for any errors, penalties, fines, or similar consequences for following the information provided in this post.
First visit https://www.fireflyadmin.com/blog/index.php/2025/01/29/losap-information-for-the-2024-income-tax-year/ to read additional information for income tax preparers. For 2024, LOSAP payments should be subject to ordinary federal income tax only. They are not subject to FICA taxes or other payroll taxes. These instructions are intended to allow a user of TurboTax online to enter the LOSAP payments so that they appear as Other Income on line z, and no FICA or self-employment tax is applied. If these instructions do not work to accomplish this goal, contact Intuit or a qualified tax professional.
For Federal Returns
- Open or continue your Federal return.
- Go to 1099-MISC.
- Do the following based on the next screen:
- If you are on the Did you get a 1099-MISC? screen, select Yes.
- If you are on the Your 1099-MISC summary screen, select Add another 1099-MISC.
- When you get to the 1099-MISC screen, check the My form has other info box, then enter the details from your 1099-MISC and select Continue.
- On the Describe the reason for this 1099-MISC screen, enter LOSAP Benefit 457(e)(11).
- Select None of these apply on the Does one of these uncommon situations apply? screen.
- Select No it didn’t involve work like your main job on the Did the LOSAP Benefit 457(e)(11) involve work that’s like your main job? screen.
- Select You got it in 2024 on the How often did you get income for LOSAP Benefit 457(e)(11)? screen.
- Select No it didn’t involve an intent to earn money on the Did the LOSAP Benefit 457(e)(11) involve an intent to earn money? screen.
- You need to select No here because this investment income isn’t subject to self-employment taxes.
- Follow the remaining onscreen instructions.
For New York State Returns
Remember that not all LOSAP payments are eligible to be subtracted from your New York State taxable income. Read the January 29, 2025 blog post linked above for additional information.
- Locate the page titled Changes to Federal Income.
- Scroll down to Other New York adjustments to federal income and choose Other changes (adjustments) to your federal income.
- Skip the page titled Enter Any Other Additions (unless you have them for other reasons).
- On Page Enter Any Other Subtractions, choose the box for Volunteer firefighter or ambulance worker length of service award and enter the appropriate amount.
When in doubt, contact an accountant or qualified tax professional!