Is unemployment income taxable?

Yes. Unemployment compensation is generally taxable as ordinary income on your federal return, and you should receive a Form 1099-G showing the amount paid. You can choose to have taxes withheld from benefits or make estimated payments to avoid a surprise bill at filing. Some states tax unemployment and some do not. Temporary federal exclusions have applied in unusual years, so check the current-year rules. If unemployment left you with little income, you may still benefit from filing to claim refundable credits.