H.R.7350 - To amend the Internal Revenue Code of 1986 to exempt certain late unemployment payments from taxation was cosponsored by Anna Eshoo, Alan Lowenthal, Eric Swalwell, Julia Brownley, Judy Chu, Katie Porter, Lucille Roybal-Allard, Jimmy Panetta, Doris Matsui, Nanette Barragan, Karen Bass and Jim Costa.
It was referred to the Ways and Means committee.
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.
117th CONGRESS 2d Session |
To amend the Internal Revenue Code of 1986 to exempt certain late unemployment payments from taxation.
March 31, 2022
Mr. Thompson of California (for himself, Ms. Eshoo, Mr. Lowenthal, Mr. Swalwell, Ms. Brownley, Ms. Chu, Ms. Porter, Ms. Roybal-Allard, Mr. Panetta, Ms. Matsui, Ms. Barragán, and Ms. Bass) introduced the following bill; which was referred to the Committee on Ways and Means
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.
You can read the bill here.
