im not sure you guys have had the luxury of being on unemployment... but yes you get taxed on it. you either check the little box to have federal deductions withheld or you get 1099ed on it at the end of the year. ask me how i know. if were talking about accuracy here then be accurate. im not here to get in a political war maybe just a little debate. social security: i think you are correct on. it doesnt get taxed. but we do pay taxes for it. im not sure if that counts or not. believe me i understand the imporatance of taxes to keep the country rolling but there has to be a line drawn somewhere. come on we even get taxed on stuff you win such as lottery, casino earnings, game show winnings, etc. im thankful that we have social security and unemployment and i understand that there are taxes to keep these in effect. but there are alot of chicken shit taxes as well.