Is the first 2400 of unemployment taxable in 2010?

I just did my taxes on Turbo Tax Online Free Edition today. I was surprised to find out that the first $2400 of Unemployment is now taxable. I guess the exemption for the first $2400 was a one year only thing in 2009. It is really unfortunate. Lessening the tax on unemployment would be a great way to stimulate the economy.
Yes. The break was only for 2009 federal tax exemption on the first $2400 of unemployment insurance benefits.