Can you collect unemployment while trading?

[lindq]

Quote from IronFist:

Even if the person is actively trading full-time from their home?

Income from trading/investments is not considered "earned income" for purposes of taxes, social security, unemployment, etc. etc.

 

[briana]

You've asked a legal question which may well depend on what state you live in. No one here is likely qualified to answer unless they know employment law in your state. Why don't you call the people who pay it out, you don't have to use a real name to ask a question. Feel free to use mine.

 

[HolyGrail]

Income from trading is not "passive income". Having money that is invested and maintained by another party IS passive income. The IRS defines passive income as indicated below.

1. Trade or busines activities that you DO NOT materially participate during the year.

2. Rental activities, even if you do materially participate unless you are a real estate professional.

Furthermore, if you actively have more than 500 hours in trading or any other pursuit in any calendar year then it cannot be reported as passive income.

http://www.irs.gov/pub/irs-pdf/p925.pdf

 

[GTS]

Quote from stock_trad3r:

Since its all computerized the govt. will find out.

Yes because all computers talk to each other

Please shut-up if you don't know what you are talking about.

 

[bespoke]

I think the question more people are interested in knowing the answer to is:

Can you collect welfare while trading?

 

[HolyGrail]

Legally, you can up to the point where you have invested more than 500 hours from trading. Once you pass the 500 hour limit it would be illegal to collect unemployment.

 

[wiesman02]

Quote from HedgefundTrader2:

Trading is not a substitute for job. Get back to work or you will lose whatever left of it.

Says the 9-5 wage slave.


Hey if u wanna play dirty, so will I.

 

[otcstockfund]

Quote from UDon'tKnowMe:

An honest person does have to declare it.

A dishonest person can do what ever they hell they want as long as the government doesn't find out.

this is the most accurate post...got a friend that did this a few yrs ago and he didn't get in trouble

 

[cdowis]

You can trade and still get unemployment, legally.

UC looks at wages, not income and you only report **wages** earned each week. Other income such as trading and even self-employment are not considered as long as you are legitimately seeking employment, sending resumes, etc.

Other government benefits, such as food stamps, is something else. They look at total income.

 

[briana]

Quote from HolyGrail:

Income from trading is not "passive income". Having money that is invested and maintained by another party IS passive income. The IRS defines passive income as indicated below.

1. Trade or busines activities that you DO NOT materially participate during the year.

2. Rental activities, even if you do materially participate unless you are a real estate professional.

Furthermore, if you actively have more than 500 hours in trading or any other pursuit in any calendar year then it cannot be reported as passive income.

http://www.irs.gov/pub/irs-pdf/p925.pdf

Without trying to start a flame war. Look at my previous post. The above information is from the FEDERAL GOVT and relates to FED INCOME TAXS. His question relates to STATE law and, obviously, relates to payments the STATE govt may make to him. The definition of income may be diffrent between the two So, if he wants to be sure he is not commiting fraud, he should ask someone who really knows-ie like a lawyer or someone familiar with his STATE regs. Probably not anyone on this board, unless they actually know the regs in his state.