Unemployment Compensation Is Taxable

The following is a guest post by Alan Kalman. If you or your spouse collected unemployment benefits in 2012, be sure you count that money as gross income when you file your tax return. It may come as a surprise to some workers, but unemployment compensation from your state is taxable. In fact, there’s a specific line on the 1040, 1040A and 1040EZ forms for you to add the amount to gross income. Find tax forms online. In January of …