Doing Side Jobs While on Unemployment

[housefavortie]

My question involves unemployment benefits for the state of: Kentucy

I understand that all earnings must be reported while on unemployment but the question I have is???

Over the past several years I have always filed a extra income file on a side business while fileing my taxes each year. When the economy turned south I closed my side business to focus on my full time job but lost it anyway. Since I have been on unemployment I have been able to do some side service jobs that related to my old side business. Not knowing what the service jobs would turn into I have had to purchace some equipment to be able to do them. For example: If I have made around $2000.00 on side jobs while on unemployment, but have had to purchace $1900.00 in equipment, do I only report the $100.00 or do I have to report the $2000.00. I called the local unemployment office and was unable to get a good answer.

[jk]

You report whatever you earned. Your costs are something you deal with when filing your tax returns. The UI department doesn't care what you spent your money on. They just want to know how much you earned.

[housefavortie]

In the above example I was Paid $2000.00 and had to spend $1900.00. So the amount I earned would be $100.00. IS this they way you mean report what you earned.

[jk]

no. You earned $2000. You were paid $2000. It doesn't matter what you spent. That is a business accounting that you deal with when you file your tax returns.

[KeyWestDan]

Reporting income to UC is one thing, which will reduce your benefits.

Reporting income verus expenses is another thing when it comes to income tax which is due at the end of the year.

UC does not care what you spend the money on.

Personally, I would set up a corporation and have the income go to the corporation and have the corporation pay the expenses. Then the income is not yours, it is the corporations and the corporation can pay bills.

UC is not welfare, it does not really matter how much money you have coming in (rent, interest, dividends, royalties, licenses, etc), just so that you are not working a job for it.