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Code · STATUTE-COMPILATIONS · American Rescue Plan Act of 2021 · Sec. 9042

Sec. 9042. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION

353 words·~2 min read·/statute-compilations/comps-16472/sec-9042

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## SEC. 9042 SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION ###
(a)In General **[**[26 U.S.C. 85](/us/usc/t26/s85)**]** Section 85 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: > > ### “(c) Special Rule for 2020 > > > #### “(1) In general > > 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. > > > #### “(2) Application > > For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined— > > > ##### “(A) > > after application of sections 86, 135, 137, 219, 221, 222, and 469, and > > > ##### “(B) > > without regard to this section.” > . ###
(b)Conforming Amendments ####
(1)Section 74(d)(2)(B) of the Internal Revenue Code of 1986 is amended by inserting “85(c),” before “86”. ####
(2)Section 86(b)(2)(A) of such Code is amended by inserting “85(c),” before “135”. ####
(3)Section 135(c)(4)(A) of such Code is amended by inserting “85(c),” before “137”. ####
(4)Section 137(b)(3)(A) of such Code is amended by inserting “85(c)” before “221”. ####
(5)Section 219(g)(3)(A)(ii) of such Code is amended by inserting “85(c),” before “135”. ####
(6)Section 221(b)(2)(C)(i) of such Code is amended by inserting “85(c)” before “911”. ####
(7)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”. ####
(8)Section 469(i)(3)(E)(ii) of such Code is amended by striking “135 and 137” and inserting “85(c), 135, and 137”. ###
(c)Effective Date **[**[26 U.S.C. 74 note](/us/usc/t26/s74)**]** The amendments made by this section shall apply to taxable years beginning after December 31, 2019. ## Subtitle B Emergency Assistance to Families Through Home Visiting Programs
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Sec. 9042
SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION
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