I tried using the search function and couldn't find the answer to my question so here it goes.
I have been laid off from my job for about a month now. I am also a sole proprietor. Saturday I had my first paying job. When I go to claim my next UI benefit do I claim the money I collected for the show? I know at tax time my startup expenses will outweigh what I actually brought in.
So is the money I was paid considered income for UI or am I allowed to wait until I start to make a profit before claiming income?
I am planning on claiming it just to be on the safe side but I'd like to know if my expenses factor into my income at all when claiming UI benefits.

Sorry I couldn't articulate my question a little better. Hopefully someone understands what I'm trying to say.

Thank You,
Adam

I wouldn't tell them anything about magic income at all. It could very well bite you in the butt if they know about it. If someone sees you performing, well you were doing a free show.

Pete
UTHO If I were you I would not speak so candidly here, because the nerd police are about to give you a giant tax lecture now.

Magic shop lawyers will get you into trouble, Adam. Visit http://www.thetaxmagician.com and ask an expert. Steve will either answer your question intelligently or help you find a reliable source.

:o

Let's see (thinking out loud) If I wanted to do something where I might be able to claim insanity as a defence... would I post it on a site that's easily accessible by google, using my real name and web site? mmmmmm... Sure why not.

Jay
That one put a smile on my face.

If you claim a show as income they will tell you are self-employed and stop your UI.

No you can not deduct cost of doing business from your gross, they want the gross figure only. At the end of the year if you claim your show earning that is when you claim expenses. You can claim as hobby income or business income depending on if you say you are a business or a hobby.

Remember, if file as a business you are suppose to make a profit within 5 years.

I would not report the little you get from doing a show. If you have a garage sale you do not have to report that, as it is items you already own.

I find it difficult that you can collect any unemployment, being you say your are a proprietor of a business. Unemployment is a compensation during the time you are seeking a new job. If you run a business you already have a job with income. Just because it may not be enough does not come into play.

I have collected my share of un-employment during my life and it is all how you view the questions and answer the question as it is stated.

I'm sorry I may have not been clear. In NJ you are allowed to collect Unemployment even if you "own a business" as long as you meet certain criteria. My business is something I do on the side. I usually have a full time job but with the economy the way it is business has been extremely slow and I had to be laid off until work picks up again. When I filed for unemployment my income was zero from my business so I am allowed to collect. On the unemployment form it has a spot for Self Employment Income and that would be deducted from the partial unemployment rate. This isn't a matter of whether I can collect or not it was just a question of whether or not I had to claim the money I received for the show I did. From the responses I have received I see that my initial thought was probably right adn I will claim the income I have received.
Thank you everyone for your responses.

Adam

Tell that to GM.

Adam, each state has its own laws and rules, so you really do need to talk to someone local. You do ask a good question, do expenses count in figuring your income? Certainly they do at the end of the year with taxes, but sadly you probably not going to get to claim "projected" expenses now.

What I would do is call the local Unemployment office and ask them directly, Before filling out the form. It could be that the income could be adjusted using 'actual' expenses.

Tom

Well NJ is a lot easier then Indiana, tell them you are self-employed you are out. Tell them you made a little income and they subtract the gross amount from your unemployment payment.

If you are self employed they direct you to get out and do some sales work to increase your business.

It also seems you must pay unemployment taxes when you are self-employed with a business. So I guess things may well be different in your state.