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  1. #1
    Join Date
    Dec 2013
    Posts
    4

    Default Getting a 1099 Income While on UI Benefits

    My question involves unemployment benefits for the state of: California.

    I have been receiving UI benefits for 2013 pretty much from 2nd week of January. It is slotted to expire on 12/7/2013. I finished my state benefits, and tier 1 federal extension. Now on the tier 2 federal extension and I still have money left on it as of 12/8/2013.

    I am assuming that they will send me a letter stating I am ineligible to apply for a fresh EDD UI Claim and so continue the federal extension?
    Also, Congress typically passes the legislation to extend Federal extension benefits pretty late in December, so that it continues in to the next year. So with the 2nd and then 3rd tier Federal extension benefits, probably till end of February I should receive the UI benefits.

    Please confirm if my above hypotheses are correct?

    In 2013 I am going to earn an income of $6610 from a gig. If I report it for the 3rd week of December, I understand I will not get any UI Benefits for that week. But will it stop the UI payments for the 2nd week of December also? And what about the future benefits - 3rd federal extension, etc?

    How will this affect my UI Payments?

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Getting a 1099 Income While on UI Benefits

    You should have been reporting the income while you were doing the gig. This is likely going to cause you all kinds of issues.

  3. #3
    Join Date
    Dec 2013
    Posts
    4

    Default Re: Getting a 1099 Income While on UI Benefits

    I am yet to earn that income in 2nd or 3rd week of December. It is being reported in a 1099 tax form.

    And just to humor you, even if a person had been earning it over a period of time, 1099 reports the whole amount to the Federal tax department, not state level, and the break up of income over period of time is not shown.

  4. #4
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Getting a 1099 Income While on UI Benefits

    This isn't the how do I defraud the state and get away with it. What you perceive as undetectable to the state is not an issue here. You must report any self employment you do as YOU WORK IT. Your reports to the EDD specifically ask so this should NOT be a surprise to you.

    You lie, they find out (they do follow up on things from time to time), you'll not only be asked to repay the overpayment but you may be subject to penalty and criminal prosecution.

  5. #5
    Join Date
    Mar 2012
    Posts
    1,360

    Default Re: Getting a 1099 Income While on UI Benefits

    Quote Quoting Enfamil
    View Post
    And just to humor you, even if a person had been earning it over a period of time, 1099 reports the whole amount to the Federal tax department, not state level, and the break up of income over period of time is not shown.
    That's true, but CA EDD is pretty smart. If one reported $6610 in one week, and it doesn't look customary for the occupation, they'll come asking knowing full well that someone might be attempting to consolidate earnings earned over a longer period into a shorter one.

    As to the extensions being extended, you really can't take that to the bank. As time ticked by since they came into existence, the weeks have been reduced, the trigger rates have been increased, the phaseout periods eliminated, and the work search enforced.

    You should assume that there will be no letter, and that your benefits are going to shut off with weekending 12/28, and you should budget as that being your last payable week. That doesn't mean that you won't be paid after 12/28, but that will be the last week that you can file for, and receive payment for since weekly claims are always filed AFTER the week is complete.

    However there may be new claim availability for you. Just because you get paid on a 1099 doesn't mean that you really were a 1099 employee. Many have appealed their monetary determinations and have been successful at getting UI benefits. Based on what I'm reading here, you had wages in the Oct to Dec 2012 and two weeks in 2013 quarter that weren't used for creating a claim, and if you get this 1099 income that might not be 1099 before Dec 31 2013, there might be a way to have a base period carved out using the traditional or alternate base period methods after Jan 2014.

  6. #6
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Getting a 1099 Income While on UI Benefits

    It is not beyond the California EDD to inquire to the the contracting company as to when the work was done.
    We can not recommend you break the law.

  7. #7
    Join Date
    Dec 2013
    Posts
    4

    Default Re: Getting a 1099 Income While on UI Benefits

    I do not understand where all this rage is coming from.
    I think I clearly stated my case: I will be earning money on 2nd or 3rd week of december, not earned yet. I intend to report it. I worked as a director of engineering in the past. I have a masters degree. I used to make $18,000 a month in salary, benefits and side consultation aside. $6610 in 2 weeks is chump change for my level of qualification.

    Now can you guys get your panties outta your cracks and answer my simple damn question instead of going on a bloody horse raping jihad?

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