I believe this is still the most recent IRS guidance on taxability of MLR rebates. The answer is “yes” and “no”. (What did you expect? This guidance is from IRS.)
The guidance is in the form of FAQ's - there are 15 of them. The first one discusses the tax impact on insurance companies that make rebates. The remaining 14 describe the tax impact on insured persons who receive rebates. In summary, the Answers to the 14 Questions about individual insured persons are:
If you are still awake, that’s 8 “yes” answers and 5 “no” answers.
Are we clear?
Fun fun fun boys and girls.