SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION.

SEC. 9042. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION. (a) [26 U.S.C. 85] In General.—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) [26 U.S.C. 74 note] Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2019.