TaxGuyBill
Level 15

That's what the law says.  It says "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."

I don't see anything that says it is optional.

 

One other word of warning ... I know that you have been manually adding the deduction, but have you been avoiding returns that involve some of the things that use MAGI that are NOT affected by the $10,200 exclusion?  Probably the most common one is how much Social Security is taxable is based on MAGI, which is based on the full amount of Unemployment (the $10,200 exclusion is not used).