Cobra subsidy eligibility period has been extended upto end of February,according to a release issued by IRS.15 months subsidy is now available for those who qualify.

Workers who lose their jobs during January and February may qualify for a 65-percent subsidy on their COBRA health insurance premiums, and these newly-eligible individuals, along with those already receiving the subsidy, can now receive it for up to 15 months.

According to the American Recovery and Reinvestment Act of 2009, the COBRA subsidy eligibility period was originally scheduled to expire on Dec 31, 2009. Eligible individuals only qualified for the subsidy for nine months.

Department of Defense Appropriations Act, 2010, enacted on Dec. 19, extended the eligibility period and the maximum duration of COBRA premium assistance.

Involuntarily terminated from employment between Sept. 1, 2008, and Feb. 28, 2010, workers may be eligible for a 65-percent subsidy of their COBRA premiums for a period of up to 15 months. This deadline is extended to May 31,2010.

Employees, involuntarily terminated ,who meet certain other requirements, and certain family members of those individuals, are referred to as “assistance-eligible individuals.”

Employers must provide COBRA coverage to assistance-eligible individuals who pay 35 percent of the COBRA premium. Employers are reimbursed for the other 65 percent by claiming a credit for the subsidy on their payroll tax returns.

Form 941, Employers QUARTERLY Federal Tax Return, Form 944, Employer’s ANNUAL Federal Tax Return, or Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees may be used. Employers must maintain supporting documentation for the claimed credit.

The administrator of a group health plan or other entity must notify certain assistance-eligible individuals of the extension by Feb. 17, 2010. For assistance-eligible individuals whose nine months of subsidy had already ended, the new law also provides an extended period for the retroactive payment of their 35 percent share during a transition period.

For more information about the COBRA subsidy:read COBRA pages of IRS.gov.

As a part of American Recovery and Reinvestment Act 2009, the tax credit for non business energy property credit has been increased as a result you would be able to save a lot on tax if you take steps to save energy in your home.

1. In the new law the credit rate has been raised to 30% of total cost of the improvements that qualify.
2. Maximum limit of credit that could be claimed for years 2009 and 2010 is $1500.
3. The improvements that are qualified would be something like insulation installation, heating and air conditioning systems that are energy efficient and exterior windows that are energy efficient.
4. The products used for saving energy should be of a higher standard than specified in 2007 tax credit.
5. The improvement claimed must be a part of tax payer’s principal residence that is located in United States.
6. A certificate from the manufacturer to the tax payer assuring the standards met is necessary.

So now do you realize the importance of creating an energy efficient atmosphere that i usually advice? Act now and save most next year!!!

The Internal Revenue Service  is instigating taxpayers to exploit the huge number of tax breaks that have been introduced at the beginning of this year via ARRA or the American Recovery and Reinvestment Act.

Those who want to make first time investments such as buy a house or a new car, make purchases that will equip your home to function more efficiently, students who wish to pay for their own college fees can all benefit from the recovery law.

But it is important to follow the law carefully as all these advantages come specific dates after which you cannot make use of them, so make the most of them while they last.

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