<prompt> Human: I received about 1500 in unemployment benefits in NYS in 2014. I had 2.5 withheld for nys tax but didnt have the 10 percent withheld for federal. My wife and I are doing our taxes and its taking out 300 off the refund when we enter it in.This is like 20 percent tax rate is this right?Assistant: How would we know if its right without knowing your AGI?Unemployment is just regular income, for tax purposes.Human: Ok gotcha, the website doesnt really make it that clear. It seems like they are just yanking the money out for the unemployment, they must be totally all my income as well with it.  <response>: they must be totally all my income as well with it.Yes, unemployment compensation is ordinary income, and is added to your other income types. 