Do I pay Mass. taxes on Virginia unemployment compensation?

Q: I was laid off from my overseas job (run by a Virginia-based company) in 10/02 and received unemployment compensation from the state of Virginia during half of 2003. I lived in Massachusetts for all of 2003. Do I pay Mass. taxes on this money? Thank you. —Denise, Billerica

The following answer was provided by Mark Misselbeck, CPA, Levine Katz Nannis & Solomon PC, Needham.

A: Unless there is an exemption from tax (and there is not for federal and MA purposes), Unemployment Compensation is taxable on your 1040 and in the state in which you reside.