26 U.S.C. § 85: Unemployment compensation

In the case of an individual, gross income includes unemployment compensation. For purposes of this section, the term “unemployment compensation” means any amount received under a law of the United States or of a State which is in the nature of unemployment compensation. 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. after application of sections 86, 135, 137, 219, 221, 222, and 469, and without regard to this section. The amendments made by this section [amending this section] shall apply to payments of unemployment compensation made after December 31, 1981 , in taxable years ending after such date. No addition to tax shall be made under section 6654 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] with respect to any underpayment to the extent such underpayment is attributable to unemployment compensation which is received during 1982 and which (but for the amendments made by subsection (a)) would not be includable in gross income. the amendments made by this section shall be applied by taking into account the entire amount of unemployment compensation received during such taxable year, but the increase in gross income for such taxable year as a result of such amendments shall not exceed the amount of unemployment compensation paid after December 31, 1981 . For purposes of this subsection, the term ‘unemployment compensation’ has the meaning given to such term by section 85(c) [now 85(b)] of the Internal Revenue Code of 1986.”