Unemployment compensation; deduction
Sec. 10. (a) An individual who received unemployment
compensation, as defined in subsection (c), during the taxable year
is entitled to a deduction from the individual's adjusted gross income
for that taxable year in the amount determined using the following
formula:
STEP ONE: Determine the difference between:
(A) the federal adjusted gross income of the individual (or
the individual and the individual's spouse, in the case of a
joint return), as defined in Section 62 of the Internal
Revenue Code; minus
(B) the base amount as defined in subsection (b).
STEP TWO: Determine the greater of zero (0) or the difference
between:
(A) the individual's unemployment compensation for the
taxable year; minus
(B) one-half (1/2) of the amount determined under STEP
ONE.
(b) As used in this section, "base amount" means:
(1) twelve thousand dollars ($12,000) in all cases not covered
by subdivision (2) or (3);
(2) eighteen thousand dollars ($18,000) in the case of an
individual who files a joint return for the taxable year; or
(3) zero (0), in the case of an individual who:
(A) is married at the close of the taxable year, as determined
under Section 143 of the Internal Revenue Code;
(B) does not file a joint return for the taxable year; and
(C) does not live apart from the individual's spouse at all
times during the taxable year.
(c) As used in this section, "unemployment compensation" means
the amount of unemployment compensation that is included in the
individual's federal gross income under Section 85 of the Internal
Revenue Code.
As added by P.L.2-1987, SEC.19. Amended by P.L.5-1988, SEC.46.
Last modified: May 28, 2006