To amend the Internal Revenue Code of 1986 to exempt certain late unemployment payments from taxation.

This bill excludes from the gross income of a taxpayer up to $10,200 in unemployment compensation issued to the taxpayer for calendar year 2020, but not received until 2021. This exclusion applies to taxable years beginning after December 31, 2020.

Bill 117 HR 7350, also known as the "Unemployment Tax Relief Act," aims to make changes to the Internal Revenue Code of 1986 in order to provide tax relief for individuals who have received late unemployment payments. The bill specifically targets those who have experienced delays in receiving their unemployment benefits due to administrative issues or other factors beyond their control.

Under the proposed legislation, certain late unemployment payments would be exempt from taxation, providing much-needed financial relief for individuals who have already faced the challenges of being unemployed. This exemption would help to alleviate the burden of additional taxes on individuals who have already been struggling to make ends meet.

Overall, the Unemployment Tax Relief Act seeks to provide support for individuals who have been impacted by delays in receiving their unemployment benefits, ensuring that they are not further burdened by additional taxes on these much-needed payments.