Unemployment Compensation

About Unemployment Compensation:

compensation that includes:

• benefits paid by a state from the Federal Unemployment Trust Fund.

• unemployment insurance benefits.

• railroad unemployment compensation benefits.

• disability payments from a government program paid as a substitute for unemployment compensation.

• trade readjustment allowances under the Trade Act of 1974.

• benefits under the Airline Deregulation Act of 1978.

• unemployment assistance under the Disaster Relief Act Amendments of 1974 All unemployment compensation is taxable to the recipient. Former IRC (check if this IRC provision is current here) §85.