State Conformity to the 2020 Federal Unemployment Compensation Exclusion

 
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The federal American Rescue Plan Act of 2021, signed into law on March 11, 2021, allows up to $10,200 of Unemployment Compensation Exclusion (UCE) for taxpayers with adjusted gross income (AGI) of less than $150,000 on the 2020 federal income tax return. This federal law may or may not apply to state tax laws. States may choose to adopt or decouple from the UCE. Therefore, it is advisable to be cautious when filing your state tax returns.

The information in this article may be subjected to change as we learn more information from the states. Last Updated: 4/21/2021

 

States conforming to UCE :

  • Missouri*

  • Nebraska

  • New Mexico

  • New Jersey

  • North Dakota

  • Pennsylvania

  • Oregon

  • Utah

  • Iowa

  • Louisiana

  • Arkansas

  • Delaware

  • District of Columbia*

  • Illinois

  • Kansas*

  • Maryland

  • Michigan

  • Maine

  • Massachusetts

  • Oklahoma

  • Ohio

(*) At this time, the states do not have any requirement or authority to conform or decouple to UCE. The states follow and use the federal adjusted gross income (that includes the UCE) in the calculation of the tax returns.

 

States decoupled from UCE:

  • California

  • Colorado

  • Indiana

  • Minnesota

  • Idaho

  • Mississippi

  • Rhode Island

  • Montana

  • New York

  • South Carolina

  • Wisconsin

  • Georgia

  • Kentucky

  • Vermont

  • Virginia

 

States that we have yet to receive any information from have not been included in this article.

Disclaimer: This article is published for informational purposes only and is not intended as a legal advise. This article may not provide the latest updates from the states. Please visit the state’s official websites for more information. All information here may be subject to change.

 
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