New Unemployment Exclusion:
The American Rescue Plan Act of 2021 (ARPA), enacted on 3/11/21, excludes from income up to $10,200 of unemployment compensation paid by the states and federal government; [as reported on Form 1099-G (Certain Government Payments)] in 2020 if modified Adjusted Gross Income (AGI) is less than $150,000.
If married, each spouse receiving unemployment compensation may exclude up to $10,200. If modified AGI is $150,000 or more, unemployment income cannot be excluded.