April 2010

COBRA Subsidy Eligibility Extended to May 31

From WebCPA.

The Internal Revenue Service is helping spread the word that the COBRA subsidy eligibility period has been extended to May 31.

Workers who lose their jobs during April and May might qualify for a 65 percent subsidy on their COBRA health insurance premiums. Last year’s stimulus bill, the American Recovery and Reinvestment Act, established the subsidy to help workers who lost their jobs as a result of the recession to maintain their employer-sponsored health insurance.

The Continuing Extension Act of 2010, enacted earlier this month, reinstated the COBRA subsidy, which had expired on March 31. As a result, workers who are involuntarily terminated from employment between Sept. 1, 2008, and May 31, 2010, may be eligible for a 65 percent subsidy of their COBRA premiums for a period of up to 15 months.

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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.