@dergib The bill states the following:
“(1) IN GENERAL.—In the case of any taxable year beginning in 2020, if the adjusted gross income of the taxpayer for such taxable year is less than $150,000, the gross income of such taxpayer shall not include so much of the unemployment compensation received by such taxpayer (or, in the case of a joint return, received by each spouse) as does not exceed $10,200.
Similarly, the IRS instruction revision say, "If your modified adjusted income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021 excludes from income up to $10,200 of unemployment compensation paid to you in 2020."
I'm reading both to mean the AGI has to first be below $150k in order to allow up to $10.2k of UI to not be taxable. So I think if the taxpayer is above $149,999.99 AGI counting the UI, then it's not eligible. I've heard some people talking about MFS instead of MFJ to be able to take advantage of this.
