Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-07-2009, 03:10 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
What are tax implications of the Health Coverage Tax Credit passed in 2009?

The Trade Adjustment Assistance Health Coverage Improvement Act was passed as part of the American Recovery and Reinvestment Act of 2009. The Health Coverage Tax Credit (HCTC) changed as a result of this new law.

1. HCTC Reimbursement Credits are available in 2009
Newly-enrolled participants can now request to receive reimbursement for premiums paid to qualified health insurance while eligible and enrolling in the monthly HCTC Program. If the request is approved, participants will receive the reimbursement as a credit on their monthly HCTC account. To find out more, click on the link below. (the Reimbursement Request)page.HCTC: Requesting Reimbursement

2. The HCTC pays a greater portion of your health insurance costs.
In May 2009, the tax credit increased from 65% to 80% of qualified health insurance premiums, allowing participants to pay only 20% for health insurance each month.

3. Training and waiver requirements changed for certain TAA recipients. Thus, it is easier to continue to be eligible for the HCTC.

4. COBRA benefits have been extended for HCTC-eligible individuals.However, these benefits have been extended till December 31, 2010. Still, Employers are responsible for extending COBRA benefits for these individuals.

5. The new 65% COBRA Premium Reduction Program can affect an individual's eligibility for the HCTC during the same month.
If an individual receives a 65% COBRA Premium Reduction through your former employer that individual will not be eligible to receive the HCTC during that same month.

If an individual wishes to receive the HCTC and are already recieving the COBRA Premium Reduction, that individual can switch by opting out fo the COBRA Premium Reduction program prior to registering for the monthly HCTC Program

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The IRS announces an increase in Adoption tax credit for 2009! TaxGuru Tax Credit 0 07-19-2009 10:48 AM
Tax Implications Monroe Income 0 03-30-2009 01:01 PM
IRS Releases Information to Help Employers Claim COBRA Medical Coverage Credit Samatg Tax News 0 02-26-2009 05:46 PM
2009 Stimulus Credit for New Home Buyers jaredeinstein Homeowner Tax 0 02-20-2009 01:14 PM
Can taxpayers claim the tax credit in 2008 for a home bought in 2009? TaxGuru Homeowner Tax 0 01-29-2009 03:02 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.