I am currently on unemployment because I got laid off from my job. I decided recently to start up a little fiverr store just so I can mostly get experience with music video editing. I am charging $5 for about a weeks worth of work. Now that fiver has asked me for a W-9, how do I report that on my unemployment? Also, is it possible that I can just keep all of the money in my fiver account until after I am off unemployment insurance to avoid paying taxes and showing that I got it until I am off unemployment, I just don’t want to risk losing my unemployment. Thank you!
If I’m not mistaken, state unemployment insurance requires a recipient to declare ALL moneys earned in a weekly or bi-weekly basis. Sellers on the website do not “start up a little fiverr store.” You are instead providing your services on the Fiverr platform, and receive payment through Fiverr as well.
If you are earning money through Fiverr, you are technically, and likely legally, not unemployed. You should declare your earnings to be on the safe side. If you are earning only a small amount of income compared to the job you were laid off from, you might still receive unemployment benefits, but if you earn enough money, you may receive reduced or no benefit payments.
Take my advice with a heaping pinch of salt since I am not an expert in this field.
I mean I don’t know if I’d call making $5/week employed. I can definitely declare my earnings, I’m just not sure how. I don’t know if I put fiver as my employer or if there’s like a self employed option or something. I’m just confused what to put it under. Also, do you think I can just hold my fiverr balance and then cash it out when I am off unemployment?
It makes no difference if you hold it in your account or cash out. You could make $100 a month and it won’t even put a scratch on your unemployment.
What do you mean by it wont put a scratch? I have to put how much I make a week outside so it can calculate my unemployment values and there’s serious fines and consequences for not putting it.
What I’m saying is $100 a month will not lower your unemployment payment to the point where it’s noticeable. I have a friend who was working 16 hours a week and was still was able to claim his full unemployment plus the extra $600 they were giving out during this pandemic.
Your $5 a week on Fiverr is barely a fraction of what you were getting when you were employed. Even at a $100 a month it still isn’t much.
You only owe taxes if you earn more than $600 a year. You won’t get a 1099 unless you earn over $20,000.