DOL Webcast on COBRA Premium Subsidy
The Department Labor and the IRS are still working hard on creating guidance on implementing the 65% COBRA premium subsidy enacted in the stimulus law. They held a two-hour webcast yesterday for employers, their third-party administrators, and insurance companies. Officials from the Department of Labor, Depart of Treasury, and the IRS presented. Although it's primarily targeted at employers, the webcast can be very helpful for the laid-off employees as well. If you or someone you know are potentially eligible for the COBRA subsidy, watch the webcast.
The webcast archive will be available from now through June 23. It requires registration, but you don't have to give your real personal information. You can just use tfbreader@invalid.com because I registered with that address already. If you don't have two hours for the webcast, read the slides.
The COBRA subsidy is a subsidy paid directly to the employers. It's not taxable to the employees.
Tax Cuts in Stimulus Bill Updated
American Recovery and Reinvestment Act of 2009 was signed into law on Feb. 17, 2009. CCH once again published a great summary for the tax provisions in the law.
CCH Tax Briefing: American Recovery And Reinvestment Act Of 2009
Tax Breaks In Stimulus Bill for Buying a Home Or a New Car
[Update on Feb. 18, 2009: American Recovery and Reinvestment Act of 2009 was signed into law on Feb. 17, 2009. This post is updated with the latest info from what's in the law. Please also read the follow-up post for other tax provisions in this law.]
1. $8,000 tax credit for buying a home. The new stimulus law will give up to $8,000 tax credit to first-time homebuyers. Unlike the previous $7,500 tax credit for first-time homebuyers, which has to be paid back in 15 years, this is a true tax credit as long as you hold the home for 3 years. The credit is still limited to people with an AGI under $75k (single) or $150k (married filing jointly). This tax credit is refundable, which means it's not limited to your federal income tax liability. The qualifying purchase dates are between Jan. 1, 2009 and Nov. 30, 2009. So it's not retroactive for purchases in 2008.
Tax Cuts in Fiscal Stimulus Package
Update on Feb. 14: The stimulus package has been passed by both the House and the Senate. The President is expected to sign it shortly. See the follow-up post for updated information.
Subscribe
