Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 76-63

1976-1 C.B. 14

Section 61

IRS Headnote

Unemployment benefits under special Federally funded programs. Benefits received under Title II of the Emergency Jobs and Unemployment Assistance Act of 1974 and the Emergency Unemployment Compensation Act of 1974 are not includible in the gross income of the recipients.

Full Text

Rev. Rul. 76-63

Advice has been requested whether unemployment compensation payments received under the Special Unemployment Assistant Program, Title II of the Emergency Jobs and Unemployment Assistance Act of 1974, Pub. L. No. 93-567, 88 Stat. 1845, and the Emergency Unemployment Compensation Act of 1974, Pub. L. No. 93-572, 88 Stat. 1869, are includible in the gross income of the recipients under section 61 of the Internal Revenue Code of 1954.

The Special Unemployment Assistance Program is a temporary, Federally funded program under which weekly unemployment assistance payments are furnished for periods up to 26 weeks to individuals who are unemployed and unable to obtain work, and who are not otherwise eligible for unemployment allowances under any other State or Federal law.

The Emergency Unemployment Compensation Act created a temporary Federally funded program under which weekly unemployment assistance payments are furnished for periods up to 13 additional weeks to individuals covered by other established unemployment compensation programs. These individuals must be unemployed, unable to obtain work, and must have exhausted their right to regular and extended Federal-State unemployment compensation benefits or, in some cases, have no right to the extended benefits.

Section 61(a) of the Code provides that gross income means all income from whatever source derived, unless otherwise excluded by law.

Rev. Rul. 70-280, 1970-1 C.B. 13, holds that unemployment benefits paid to individuals by a state agency from the Federal Unemployment Trust Fund are not includible in the gross income of the recipients. Rev. Rul. 73-154, 1973-1 C.B. 40, holds that the principle enunciated in Rev. Rul. 70-280 is equally applicable to emergency unemployment compensation payments made under the Emergency Unemployment Compensation Act of 1971.

Similarly, the holding of Rev. Rul. 70-280 is also applicable to unemployment compensation paid under Title II of the Emergency Jobs and Unemployment Assistance Act of 1974, and the Emergency Unemployment Compensation Act of 1974. Accordingly, unemployment compensation payments received under the above-named Acts are not includible in the gross income of the recipients.