H.R. 942House117th Congress (2021-2023)In Committee

To amend the Internal Revenue Code of 1986 to provide for the application of the premium tax credit in the case of certain individuals who are unemployed during 2021.

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Updated February 7, 2026 at 10:32 PM UTC

The bill changes the tax code so that people who received unemployment benefits in 2021 can qualify for the premium tax credit. It treats those individuals as eligible taxpayers and ignores any household income above 133 % of the federal poverty line when determining the credit. The change applies to tax years starting after December 31, 2020, affecting anyone who got unemployment compensation during 2021.

Key Provisions

Adds a new “Special Rule for Individuals Who Receive Unemployment Compensation During 2021” to Section 36B of the Internal Revenue Code.
Treats a taxpayer who received or was approved for unemployment compensation in any week of 2021 as an applicable taxpayer for the premium tax credit.
Excludes from credit calculations any household income that exceeds 133 % of the poverty line for the family size.
Requires the taxpayer to provide a self‑attestation and documentation prescribed by the Secretary to prove receipt or approval of unemployment compensation.
Clarifies that the joint‑return requirement and other income rules remain unchanged for other parts of the credit calculation.
Effective for taxable years beginning after December 31, 2020.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

February 8, 2021

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HouseIntro Referral

Introduced in House

February 8, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

February 8, 2021

Bill Text

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Introduced in HouseIssued February 8, 2021

117th CONGRESS

1st Session

H. R. 942

IN THE HOUSE OF REPRESENTATIVES

February 8, 2021

Mrs. McBath (for herself and Ms. Sánchez) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide for the application of the premium tax credit in the case of certain individuals who are unemployed during 2021.

Application of premium tax credit in case of individuals receiving unemployment compensation during 2021

(a)

In general

Section 36B of the Internal Revenue Code of 1986 is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:

(g)

Special rule for individuals who receive unemployment compensation during 2021

(1)

In general

For purposes of this section, in the case of a taxpayer who has received, or has been approved to receive, unemployment compensation for any week beginning during 2021, for the taxable year in which such week begins—

(A)

such taxpayer shall be treated as an applicable taxpayer, and

(B)

there shall not be taken into account any household income of the taxpayer in excess of 133 percent of the poverty line for a family of the size involved.

(2)

Unemployment compensation

For purposes of this subsection, the term unemployment compensation has the meaning given such term in section 85(b).

(3)

Evidence of unemployment compensation

For purposes of this subsection, a taxpayer shall not be treated as having received (or been approved to receive) unemployment compensation for any week unless such taxpayer provides self-attestation of, and such documentation as the Secretary shall prescribe which demonstrates, such receipt or approval.

(4)

Clarification of rules remaining applicable

(A)

Joint return requirement

Paragraph (1)(A) shall not affect the application of subsection (c)(1)(C).

(B)

Household income and affordabillity

Paragraph (1)(B) shall not apply to any determination of household income for purposes of paragraph (2)(C)(i)(II) or (4)(C)(ii) of subsection (c)

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2020.