Discussion:Unemployment benefits - reporting self-employed income
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Discussion Forum Index --> Basic Tax Questions --> Unemployment benefits - reporting self-employed income
Discussion Forum Index --> Tax Questions --> Unemployment benefits - reporting self-employed income
| 3 August 2009 | |
| My client is receiving CA unemployment benefits, but is trying to some consulting work on the side. She just received her first payment of $1,500 and needs to report that to the EDD. However, she has incurred YTD expenses of $2,500 in setting up this business. Does she need to report anything yet? Does she only report when she has made a YTD profit? | |
| 3 August 2009 | |
| try this
[Self Employment or Other Work/General] TexCPA 11:39, 3 August 2009 (CDT) | |
| 3 August 2009 | |
| Great link. Read this and other info. Unfortunately, it does not directly answer my questions. However, from what I read this is what I think the answer is:
1. Self-employed person is still considered unemployed provided they cannot performing services similar to an employee and their self employed earnings are not considered XE (excessive earnings). Could not find definition of XE. 2. Must report net income to EDD which will reduce benefits. No guidance given on what expenses are allowed or unallowed. | |
| 3 August 2009 | |
| Excessive earnings are defined as wages paid during a week of less than full-time work that, when reduced by the greater of $25 or 25% of the wages paid, exceed his weekly benefit amount. UC 1252.
When computing benefits, compensation earned as an independent contractor are not reduced by costs of doing business. UC 1279. | |
| 4 August 2009 | |
| Taxteck, I think you are misreading UC 1279. See the link above that discusses why self-employed people are NOT considered to be earning "wages". | |
