COBRA premium assistance

[AZ-Tax]

For those TP's that qualify, will they recieve a document displaying the amt of "premium assistance" the TP recieved and if so what is that form called and who issues it?

[taxmandan]

Why would anything be sent to the taxpayer? As I understand the law the subsidy is not a taxable event so there is no effect to the taxpayer.

[AZ-Tax]

So correct me on the process

The qualifying TP on COBRA would normally pay $1000/mo for their COBRA health ins. Does Health Insurer then send the TP a premium bill for $350/mo or the full $1000 and the TP claims the credit on their 2010 tax return (exclude any AGI phaseout)

[taxmandan]

The qualifying TP on COBRA would normally pay $1000/mo for their COBRA health ins. Does Health Insurer then send the TP a premium bill for $350/mo or the full $1000 and the TP claims the credit on their 2010 tax return (exclude any AGI phaseout)

Yes, the TP got a bill for the portion they paid, I'm not sure what credit you are referring to??? The COBRA premiums were subsidized by the gov't. but nothing for the TP to do on their 2010 return. The ex-employer paid the 2/3 subsidy through payroll tax adjustments to their 941 deposits.