Property-Tax Deduction and COBRA Subsidy Updates
Legislators didn't extend the COBRA subsidy. But there's still a chance that the property-tax deduction for non-itemizers will be revived.

Can I deduct my property taxes if I don’t itemize my deductions?
At the moment, no. But don’t give up hope. Non-itemizers were able to add up to $500 ($1,000 for married couples filing jointly) to their standard deduction for real estate taxes they paid in 2008 and 2009. Legislators’ attempt to extend that deduction and several other expired tax breaks for 2010 failed in June. There are several tax issues Congress must still take up before the end of the year, though, including extending income-tax rates that expire this year and reviving the estate tax that expired last year. So lawmakers will have another opportunity to reinstate the property-tax deduction for 2010.
Has the 65% COBRA health-insurance subsidy for laid-off workers been extended?

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
No. People who lost their jobs between September 1, 2008, and May 31, 2010, qualify for a government subsidy to pay 65% of their premiums for up to 15 months when they continue their health-insurance coverage under their former employer’s plan through COBRA. But the law has not been extended yet, so people who lost their jobs after May 31 are not eligible for the subsidy (people who lost their jobs before then, however, can continue to receive the subsidy for up to 15 months).
Legislation signed into law by the president on July 22 extended unemployment benefits but did not extend the COBRA subsidy. For more information about the COBRA subsidy and frequent updates about its status and any further extensions, see the Department of Labor’s COBRA page.
If you aren’t eligible for the COBRA subsidy, your health-insurance premiums can be quite steep because you have to pay both the employer’s and the employee’s share of the premiums -- which totals $13,375, on average, per year for family coverage, according to the Kaiser Family Foundation. If you’re healthy and have to pay the full cost for COBRA coverage, you might be able to find a better deal on your own. You can shop for individual health insurance at eHealthInsurance.com, find a local agent at www.nahu.org or get a list of available policies in your area at www.healthcare.gov. Also see Score Big Savings on Health Coverage for more information and other strategies to help you find affordable coverage.
But if you have a medical condition that makes it difficult or expensive to get insurance on your own, then COBRA may still be your best bet -- even without the subsidy.
Regardless of whether you receive the subsidy, you can keep your former employer’s health-insurance coverage through COBRA only for up to 18 months after you lose your job. See Getting Health Insurance on Your Own for advice about what to do after you exhaust your COBRA benefits.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
What About Those ‘Guaranteed’ Life Insurance Ads?
Guaranteed life insurance policies can sound tempting if you've been declined for insurance elsewhere. Here are four downsides and one alternative.
-
13 Answers to Pressing Social Security Questions
From smart claiming strategies for couples to tips on maximizing your monthly check, we have advice that can help you.
-
2025 SALT Cap Could Hurt Top 'Hidden Home Cost'
Tax Deductions The latest GOP tax bill might make hidden homeowner costs worse for you. Here’s how.
-
No Social Security Tax Cuts in Trump’s 'Big Bill'? What Retirees Need to Know
Tax Policy Eliminating taxes on Social Security benefits is missing from President Trump’s proposed tax overhaul. Here’s why and what an alternative offering could mean for retirement taxes.
-
Five Surprising GOP Senate Bill Tax Changes to Know
Tax Policy Senate Republicans released proposed tax changes for Trump’s ‘one big, beautiful bill.” Some provisions are already stirring debate.
-
Senate Seeks $6,000 'Bonus' Tax Deduction for Those Age 65 and Older
Tax Reform Under Trump’s ‘big bill,’ the Senate Finance Committee has proposed a larger bonus tax deduction for older adults than the House. Will it pass?
-
Don't Miss These Four Tax Breaks for Americans Living Abroad in 2025
International Tax U.S. expats can reduce their tax burden by taking advantage of a handful of tax credits and deductions.
-
Summer Backyard Ideas With Added Tax Benefits for 2025
Tax Tips Find out how these summer 2025 home projects can help you save on taxes next year.
-
Why Your California Utility Bill Could Increase Under Trump's Tax Plan
State Tax Energy bills in the Golden State may shock you if Republican lawmakers in Congress remove certain energy tax credits through Trump's 'big, beautiful bill.'
-
Property Tax Relief Bill in Texas: What to Know for 2025
Property Tax Texas residents could get major relief from property taxes in 2025. Here's a breakdown of the tax cuts.