In part, section 9042(a) of the American Rescue Plan Act of 2021 amends section 85 of the tax code to read:
(c) Special Rule For 2020.—
“(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.
Note the phrase "shall not include." This wording provides no option to refuse to reduce your AGI by the $10,200 UCE.
