### Question
How does the law define unemployment compensation?


### Answer
Under *26 U.S.C. § 85*, **unemployment compensation** is defined as:

> any amount received under a law of the United States or of a State which is in the nature of unemployment compensation

#### Citation:
  - *26 U.S.C. § 85*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART II-ITEMS SPECIFICALLY INCLUDED IN GROSS INCOME**

