Is anyone familiar with this? Is the amt of subsidy payment based on the taxpayers AGI or does this have nothing to do with the taxpayers AGI and all taxpayers regardless of their AGI recieve the 65% Govt subsidy?
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From the IRS website
TR-1
Q. Will the COBRA premium subsidy be taxable income for the individual?
A. The premium subsidy is not included in the individual’s income. However, there is a phase-out of eligibility for the subsidy, which will increase some high-income individuals’ tax liability if they receive the subsidy. The phase-out impacts individuals whose modified adjusted gross income exceeds $125,000, or $250,000 for those filing joint returns. Tax liability is increased, to achieve repayment of a portion of the subsidy, for those taxpayers whose modified adjusted gross income is between $125,000 and $145,000, or $250,000 and $290,000 for those filing joint returns. If a taxpayer’s modified adjusted gross income exceeds $145,000, or $290,000 for those filing joint returns, the full amount of the subsidy must be repaid as an additional tax. There is no additional tax for individuals with modified adjusted gross income less than these income levels. (02/26/09)
Hope this helps!
Mo
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