I have heard of some benefits for employees who have been laid off, etc, but is there any concern for the tax preparer? Any thing different we have to do in regard to the tax return?
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COBRA Subsidy
This section of the ARRA has a significant impact on the preparation and filing of payroll tax returns for some employers.
Most individual tax returns will not be affected.
In preparing a Form 1040, you will run into this only if you have a high-income client who lost his job, and who elected to continue medical insurance coverage under COBRA.
The government is subsidizing part of the cost of the COBRA continuation insurance, but taxpayers with too much income have to recapture the subsidy.
If you're still reading, see Worksheet F, on page 24 of IRS Publication 502 (2009). I'm not kidding.
I haven't had a client in this situation, and I don't anticipate that I will. I'm familiar with this only because I read about it in the CPE course that I purchased from the TaxBook. It's in the New Tax Law Review.
Great product. 4 hours of CPE for 38 bucks.
BMKLast edited by Koss; 02-01-2010, 07:36 PM.Burton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process.
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