Yes, on the tax summary, this income shows up under Unemployment / paid family leave (1099-G) because it is reported on the same form as paid family leave, which is 1099-G.
Unemployment compensation (UC) is taxable and is included in your adjusted gross income (AGI). It isn't considered earned income, so it can't be used to qualify you for Earned Income Credit (EIC), but it can disqualify you for the credit because it is part of your AGI. Follow this link to learn more.
During 2021 only, up to $10,200 of UC was excluded from taxable income, so maybe that's why you are thinking this is wrong. Prior to 2021 and since January 1, 2022, this is the way UC and EIC work.
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