The American Rescue Plan enacted on March 11, 2021, allows for people with an adjusted gross income (AGI) of less than $150,000.00 who received unemployment compensation of up to $10,200 in 2020 to not pay any tax on that income. Any amount over $10,200 is still taxable. If you are married, each spouse wouldn’t have to pay any tax on $10,200.
Unfortunately, anyone who has a modified AGI of $150,000 or more can’t exclude any unemployment compensation. For more detailed information please click here.