Coronavirus Unemployment Benefits Tax Relief Act

II 116TH CONGRESS 2D SESSION S. 4713 To amend the Internal Revenue Code of 1986 to exempt a portion of unemployment compensation received during 2020 from income taxes. IN THE SENATE OF THE UNITED STATES SEPTEMBER 24, 2020 Mr. DURBIN (for himself, Ms. BALDWIN, Ms. STABENOW, Mr. REED, and Ms. HIRONO) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to exempt a portion of unemployment compensation received during 2020 from income taxes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Coronavirus Unem- 4 ployment Benefits Tax Relief Act’’. 5 VerDate Sep 11 2014 05:06 Oct 15, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4713.IS S4713 kjohnson on DSK79L0C42PROD with BILLS 2 •S 4713 IS SEC. 2. SUSPENSION OF TAX ON PORTION OF UNEMPLOY- 1 MENT COMPENSATION. 2 (a) IN GENERAL.—Section 85 of the Internal Rev- 3 enue Code of 1986 is amended by adding at the end the 4 following new subsection: 5 ‘‘(c) SPECIAL RULE FOR 2020.—In the case of any 6 taxable year beginning in 2020, gross income shall not in- 7 clude so much of the unemployment compensation received 8 by an individual as does not exceed $10,200.’’. 9 (b) EFFECTIVE DATE.—The amendment made by 10 this section shall apply to taxable years beginning after 11 December 31, 2019. 12 Æ VerDate Sep 11 2014 05:06 Oct 15, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S4713.IS S4713 kjohnson on DSK79L0C42PROD with BILLS