This bill excludes from the gross income of a taxpayer up to $10,200 in unemployment compensation issued to the taxpayer for calendar year 2020, but not received until 2021. This exclusion applies to taxable years beginning after December 31, 2020.
To amend the Internal Revenue Code of 1986 to exempt certain late 
                  unemployment payments from taxation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SPECIAL RULE FOR LATE UNEMPLOYMENT COMPENSATION PAYMENTS.

    (a) In General.--Section 85(c) of the Internal Revenue Code of 1986 
is amended by redesignating paragraph (2) as paragraph (4) and by 
inserting after paragraph (1) the following new paragraphs:
            ``(2) Special rule for delayed 2020 unemployment 
        compensation.--In the case of any taxable year beginning in 
        2021, if a taxpayer is issued an unemployment compensation 
        payment with respect to calendar year 2020 but such payment is 
        not received by the taxpayer until 2021, the gross income of 
        such taxpayer shall not include so much of the unemployment 
        compensation received by such taxpayer as does not exceed 
        $10,200.
            ``(3) $10,200 aggregate limitation.--The total amount 
        excluded from gross income with respect to a taxpayer under 
        this subsection for all taxable years shall not exceed 
        $10,200.''.
    (b) Conforming Amendment.--Paragraph (4) of section 85(c) of the 
Internal Revenue Code of 1986 (as redesignated by this section) is 
amended by striking ``paragraph (1)'' and inserting ``paragraphs (1) 
and (2)''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2020.
                                 <all>
To amend the Internal Revenue Code of 1986 to exempt certain late unemployment payments from taxation.
To amend the Internal Revenue Code of 1986 to exempt certain late unemployment payments from taxation.
Official Titles - House of Representatives
Official Title as Introduced
To amend the Internal Revenue Code of 1986 to exempt certain late unemployment payments from taxation.
Rep. Thompson, Mike