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    ridiculous's Avatar
    ridiculous Posts: 2, Reputation: 1
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    #1

    Nov 13, 2012, 09:39 AM
    Unemployment benefits
    I filed after layoff last Dec. went back to work Februay until layoff September. Unemployment Benefits ended (+emergency benefits) October. I can refile in December since I worked again (so they say at the unemployment office. In the meantime I have been contractng work sporadically for just once or twice a week (not substantial money at all, can't live on it only made 300). What will happen after I refile for benefits? When will this independent contract work be reported and how does that affect unemployment benefits? Trying to make it and don't want to lose these contract people as these businesses could eventually get big enough for me to actually live on that income. If I stop, I will lose that potential and right now, these are the only possibilities for my future unless I move, which I can't because I have 0 money. Hit me at a really bad bad time
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #2

    Nov 13, 2012, 10:12 AM
    Your benefits ended in October, one month after your last layoff? Were you collecting over a much longer period than last Dec-Feb? I don't understand why you have to wait until Dec.

    Your contract work will be reported on a 1099, which merely gives a total paid out for the whole year. Those go out early next year, the issuer declares them as expense on their taxes, and you declare them as income on yours. But the IRS doesn't know what weeks they cover. If they become your sole or even a major part of your income, you file estimated taxes on them quarterly (and again, the IRS relies on you to be honest about the period they cover). An audit of either party will reveal when, of course, so it's a risk to fudge. But for the rest of this year, I wouldn't worry about it.

    (I'm not clear on the 'only 300' being once a week or total so far.)
    ridiculous's Avatar
    ridiculous Posts: 2, Reputation: 1
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    #3

    Nov 13, 2012, 02:47 PM
    Quote Originally Posted by joypulv View Post
    Your benefits ended in October, one month after your last layoff? Were you collecting over a much longer period of time than last Dec-Feb? I don't understand why you have to wait til Dec.

    Your contract work will be reported on a 1099, which merely gives a total paid out for the whole year. Those go out early next year, the issuer declares them as expense on their taxes, and you declare them as income on yours. But the IRS doesn't know what weeks they cover. If they become your sole or even a major part of your income, you file estimated taxes on them quarterly (and again, the IRS relies on you to be honest about the period they cover). An audit of either party will reveal when, of course, so it's a risk to fudge. But for the rest of this year, I wouldn't worry about it.

    (I'm not clear on the 'only 300' being once a week or total so far.)
    Thank you so much for answering this. So far I have only earned 300.00. December 2011 was the first filing, so the benefits for that lasted one year or 12 weeks total in that year, so I can't refile until after the year has past for the next filing. Believe me, this is not my choice. I'd rather have my 50/hr job back. It was great while it lasted. Crazy careers, not highly in demand but I am good at them, the stuff that I do.

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