If you haven’t filed your taxes yet, I strongly urge you to file online with the help of online software from TurboTax or TaxCuts, or electronically through HR Block. They have the latest updated software –updated just this week — that will automatically compute the taxes on unemployment benefits. The first $10,200 of unemployment benefits is NOT taxable — IF your AGI is under $150,000 (and that $150,000 does not include unemployment benefits you received)!!!
Same rules for Illinois, but only the software will compute this properly for you.