Sec. 10. (a) For purposes of this section, "excess adjusted gross income" means the greater of zero (0) or one-half (1/2) of:
(1) the individual's adjusted gross income or the combined adjusted gross income of the individual and the individual's spouse, if the individual files a joint return with the individual's spouse, as determined under Section 62 of the Internal Revenue Code; plus
(2) any unemployment compensation excluded from federal gross income under Section 85(c) of the Internal Revenue Code; minus
(3) the following amount:
(A) Eighteen thousand dollars ($18,000) for an individual who files a joint tax return with the individual's spouse.
(B) Zero dollars ($0) if the individual:
(i) is married at the close of the taxable year, as determined under Section 7703 of the Internal Revenue Code;
(ii) does not file a joint return for the taxable year; and
(iii) does not live apart from the individual's spouse at all times during the taxable year.
(C) Twelve thousand dollars ($12,000) for an individual not described in clause (A) or (B).
(b) "Eligible unemployment compensation" means unemployment compensation received by an individual and included in the individual's federal gross income under Section 85 of the Internal Revenue Code plus any unemployment compensation received by the individual excluded from federal gross income under Section 85(c) of the Internal Revenue Code. The term does not include amounts not taxable under this article as a result of 45 U.S.C. 352.
(c) An individual is entitled to a deduction against the individual's adjusted gross income in an amount equal to the greater of zero (0) or the remainder of:
(1) eligible unemployment compensation; minus
(2) excess adjusted gross income.
(d) For an individual and an individual's spouse described in subsection (a)(3)(A):
(1) the deduction under subsection (c) shall be computed based on the combined eligible unemployment compensation of the individual and the individual's spouse; and
(2) this subsection and subsection (c) shall not be construed to permit more than one (1) deduction under this section.
As added by P.L.2-1987, SEC.19. Amended by P.L.5-1988, SEC.46; P.L.182-2009(ss), SEC.196; P.L.165-2021, SEC.75.