RE: STATE question "COBRA Premium Assistance Excluded from Gross Income"--I got such, paid by the Feds, for 3 mos. I received no form from HR or gov't. RE the amount.

[uvg2017]

I learned from AETNA directly their actual dollar amts AETNA charged me monthly for medical/dental and eye insurance (never used because AETNA providers were all 2 hours away from me). I asked AETNA if the federal gov't paid these amounts (around $490/month!!), OR if  the Feds paid a discounted rate. They didn't know. The very good HR dept. (TriNet) of the firm that fired us (in Mass.) may not get back to me by 4/18, they are swamped. I don't want to file for extensions if possible. Should I just enter those high amounts? Should I have  received some kind of form for this COBRA PREMIUM ASSISTANCE?? Thank you!

[DMarkM1]

Your employer would have paid Cobra insurance premiums under the subsidy program so they will be the place with the answer.  If you are unable to get the answer from HR in a timely manner you may need to extend.

First you need to be sure you understand what the question is about.  The Cobra Assistance Subsidies have already been excluded from your Federal Adjusted Gross Income.  MA does not conform to the Federal Exclusion of these subsidies.  Answering "Yes" to this question and putting an amount in the box will increase your MA taxable income.  If you click on the Learn More link on the page you will see an explanation that states:  

Therefore, such COBRA continuation coverage subsidies provided to certain individuals must be included in Massachusetts gross income.

Below are two links explaining the Cobra assistance program and how you would have applied.  You would have filed a specific application with the MA Insurance Commission through your employer to request the subsidies.  The first link has an example of the appication.  You had to apply prior to 31 Jul and the subsidies would have ended by 30 Sep.  

Summary of Cobra Assistance program

Mini Cobra Assistance

[uvg2017]

That means I could file my federal on time, though, yes?
And Vermont? Just get an extension for MA? (I lived in two states). Your answers are VERY clear and helpful! Thank you!

[DMarkM1 · Accepted solution]

Yes.  Federal will be good to file and since this is unrelated to VT, VT will be good as well.  

[fishmanpd]

I understand that in Massachusetts, the COBRA assistance that is excluded from federal income is added back to income for MA state tax calculations.  However, if I have sufficient medical expenses for a deduction, should I include the reimbursed COBRA premiums in my total medical expenses? For the federal return I assumed I should exclude the reimbursed premiums as well as the reimbursements.  But if MA is taxing me on these reimbursements as income, can I deduct the expense, so it is a wash?

[RobertB4444]

@fishmanpd  Yes.