Sec. 9042. Suspension of tax on portion of unemployment compensation
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/bill/117/hr/1319/eas/section-9042·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 85 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: In the case of any taxable year beginning in 2020, if the adjusted gross income of the taxpayer for such taxable year is less than $150,000, the gross income of such taxpayer shall not include so much of the unemployment compensation received by such taxpayer (or, in the case of a joint return, received by each spouse) as does not exceed $10,200. For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined— after application of sections 86, 135, 137, 219, 221, 222, and 469, and without regard to this section. .
Section 74(d)(2)(B) of the Internal Revenue Code of 1986 is amended by inserting 85(c), before 86 . Section 86(b)(2)(A) of such Code is amended by inserting 85(c), before 135 . Section 135(c)(4)(A) of such Code is amended by inserting 85(c), before 137 . Section 137(b)(3)(A) of such Code is amended by inserting 85(c) before 221 . Section 219(g)(3)(A)(ii) of such Code is amended by inserting 85(c), before 135 . Section 221(b)(2)(C)(i) of such Code is amended by inserting 85(c) before 911 .
Section 222(b)(2)(C)(i) of such Code, as in effect before date of enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, is amended by inserting 85(c) before 911 . Section 469(i)(3)(E)(ii) of such Code is amended by striking 135 and 137 and inserting 85(c), 135, and 137 . The amendments made by this section shall apply to taxable years beginning after December 31, 2019.