COBRA insurance

[oceanlovin'ea]

I had a client come in this morning who had paid COBRA insurance since September. First time for one of these.
From reading the Tax Book, I can only find that if the income were over $125,000, some would have to be added to income. Or he can deduct it as medical expense if he itemizes.
Other than that, I see no tax benefits to him for this COBRA insurance.

Am I missing something?

Linda

[Bees Knees]

The benefit is your client should only have to pay 35% of the COBRA coverage while the government subsidizes 65%. The $125,000 threshold means if your client made that much, the subsidy must be paid back on line 60 of his/her 1040.

[Possi]

Not everyone

The benefit is your client should only have to pay 35% of the COBRA coverage while the government subsidizes 65%. The $125,000 threshold means if your client made that much, the subsidy must be paid back on line 60 of his/her 1040.

... Not everyone gets this benefit. I am the divorced spouse paying COBRA. I get no break except I am happier...

Only the employee separated from the company gets that benefit.

[Peachie]

Linda, if he's able

to itemize his medical expenses, he can take the 35% he paid to COBRA as part of his deeductions.

Peachie

[superman]

They only get the 35% if they were laid off but not if fired or quit. In this case they can write off the whole amount paid as medicial. Plus co pays and everything else.

[oceanlovin'ea]

plant closed

He worked at a Smithfield plant that closed. But they asked him to come to Kentucky and help get this plant running. He did that for a few months. Now he is out of job again, but old enough to retire and so that is what he is going to do.

ok. Thanks. I just wasn't sure and didn't want to just blow him off since he specifically asked about the COBRA payments.

Linda