The money you receive from the Michigan Unemployment Insurance Agency is, unfortunately for unemployed workers, taxable. This means that a percentage of your weekly benefits needs to go toward your end of year taxes to the Internal Revenue Service.

The Michigan Unemployment Insurance Agency makes calculating your tax liability easy by sending unemployment insurance claimants a 1099 form. This year the form will be ready by available online by February 1, 2012. The 1099 form will have the total benefits you received during the previous tax year. Simply add this to the income you declare in your tax return.