My husband and brother-in-law just got laid off from their jobs. They are thinking of starting a contracting business of their own. I was wondering, can they still collect unemployment untill the checks start coming in from their business, as long as they claim both incomes at the end of the year?
2007-06-28 00:53:15 · 4 answers · asked by mommyfor4 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
We live in Michigan.
2007-06-28 01:04:00 · update #1
If they're working and making money, they have to report it to the unemployment comp people. Until they get things going, they might or might not be able to still collect u.c. They should ask the uc people when they apply.
If they are earning money and don't report it to uc, then they could end up having to pay back their uc if and when they get caught, and could also be in additional trouble over it. Not a good idea. Reporting their income at the end of the year would keep them clean with the IRS but not with uc.
Good luck
2007-06-28 02:53:02 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Check with your state tax department. In New York you could not collect. Many years ago, I heard of a couple who jointly owned a business. They got divorced, she left the business. And because her name was still listed as one of the corporate officers, she was ineligible for unemployment.
2007-06-28 01:02:50 · answer #2 · answered by crazydave 7 · 1⤊ 0⤋
It would depend on your state regulations. In my state (Wisconsin) self-employment income does not interfere with the ability to collect unemployment benefits.
2007-06-28 00:56:44 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
I know that in my state (Ca) we have to fill out a small questionnaire every two weeks and it states: amount of money earned weather received or not. and many years ago I got my weeks mixed and miss reported and they not only make me pay tax at the end of the year, repay the overpayment it to them, they also penalized me for seven weeks...good luck
2007-06-28 21:58:13 · answer #4 · answered by id4getter 1 · 0⤊ 0⤋