That's how I understood it also, but they are in effect punishing those that file joint returns by cutting off the non taxability of unemployment at MAGI of $150,000. So, a single person would have the same cut off as a couple. Doesn't seem right. I have clients that filing married joint would be over the $150,000 thresh hold, but would be under by filing married separate, unless the tax program halves that thresh hold for MFS, but again, this is unequal tax treatment, as single people get the same $150,000 amount.