TAX TIME - Know Your Rights as a Taxpayer!

COBRAThe following changes are part of the American Rescue Plan recently passed by the House and Senate:

UNEMPLOYMENT BENEFITS

• For people with income less than $150,000, the first $10,200 of unemployment benefits for 2020 are non-taxable. Please recommend that if your clients have already filed and will need to amend, that you wait to see what NYS does as well.

• The weekly supplemental benefit, which is provided on top of regular benefits will remain $300, but will now run through September 6th.

HEALTH INSURANCE THROUGH COBRA

• Under the relief bill, the government would pay the entire COBRA premium from April 1st through September 30th. Previously, someone who loses a job could buy coverage via a former employer and have to pay at least 102% of the cost of the premium. If the individual left their job voluntarily, they would not be eligible.