Cobra Subsidy

[S T]

Under the new Cobra laws for 65% reduction through an employer that lays off an employee, are there any tax consequences to the t/p electing the reduction in the Cobra Payments? Income for a single taxpayer way, way below the threshold of $125,000-$150,000, so I don't anticipate any repayment issues.

Any other issues that have to be recognized for reporting on taxes???

Way too complicated, once again!

Thanks,

Sandy

[Bees Knees]

IRS Notice 2009-27 says the following:

http://www.irs.gov/pub/irs-drop/n-09-27.pdf

The amount of any premium reduction is excluded from an individual’s gross
income under new section 139C.

Thus, I know of no tax consequences for electing COBRA coverage and receiving the premium subsidy.

[S T]

Cobra

Thank you, Bees!

Sandy