None of his income is unemployment so the "rescue act" does not apply to him at all. It applies to you. He is taxed at your tax rate as your return is when it is filed after you apply the credit to your tax return. I believe your income to too high to get any exclusion.
The $10,200 is NOT a credit, it simply excludes up to that amount of taxable unemployment payments form your taxable income as reported on a 1099-G form.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
