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Level 3
February 21, 2022
Solved

Where to report COBRA premium assistance subsidy per the American Rescue Plan Act of 2021?

  • February 21, 2022
  • 10 replies
  • 91 views

We received the COBRA premium assistance subsidy per the American Rescue Plan Act of 2021. Where to report the amount of the subsidy received in TurboTax Deluxe? We didn't receive any unemployment payments.

    Best answer by MaryK4

    The premium subsidy is not included in income for federal tax purposes. However, its treatment for state income tax purposes is determined under state law and depends on the tax law of the particular state.   California does not conform to new IRC section 139I which excludes COBRA premium subsidies from gross income.  You will have to add the amount of COBRA premiums paid on your behalf in the California income tax section of TurboTax.  @kptx08

    10 replies

    Level 15
    February 21, 2022

    The COBRA premium assistance subsidy under ARPA is not taxable to the beneficiary and does not need to be reported on your tax return.

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    kptx08Author
    Level 3
    February 23, 2022

    Thanks for clarifying that!