According to what I just read, the $600 from Federal CARES is taxable, and will be included on the state's 1099G recipients will be sent next year.

I do know on my application with Nebraska, it did clearly state that Federal Income Tax would be taken at the rate of 10% on the $600 if I were deemed eligible.

So much confilcting conflicting information! Well, it will all get figured out eventually. Maybe.

Well, the paperwork I filled out definitely had me consent to 10% withholding for federal income tax on whatever I might receive.

But if it turns out not to be taxable, and they have taken tax out, I'll just get it refunded.

@ceasesmith wrote:

Well, the paperwork I filled out definitely had me consent to 10% withholding for federal income tax on whatever I might receive.

But if it turns out not to be taxable, and they have taken tax out, I'll just get it refunded.

Edited to be: the stimulus payments are definitely not taxable, but it looks like some states are considering the $600 taxable

[www.forbes.com]

We may just have to wait and see how that shakes out....

Edited 1 time(s). Last edit at 04/25/2020 09:53PM by SteveSoCal.

I do not know for sure if the $600 is taxable or not.

I do know in TN if you opt to have taxes taken for the state UE, they are taking it for the $600 as well.

@SteveSoCal wrote:

@sestrahelena wrote:

The federal $600 is income-taxable, right? As ICs we (should) know how to handle that but I foresee a lot of W2 workers who will be caught off guard at tax time next year.

The $600 payment is specifically NOT taxable.

It's all a big mess! I received a letter stating that it has been determined that I am eligible for benefits. However, I also go a letter stating that I am, "Monetarily Ineligible." I looked online and it's showing $0 income for last year's "wages." Tried the chat and I had the same thing as ceasesmith. Over a hundred in line with a wait of thousands of minutes and there doesn't appear to be a countdown on it either to show you moving up the queue. It just says stay on the website. (Nebraska)

Apparently the DOL issued guidance to the states the $600 is taxable and should be included on 1099-Gs.

[www.debevoise.com]

That's what I read, too.

That source deals with "regular unemployment benefit recipients." It refers to "employees." So, it is still unclear how ICs are treated.

I filed my taxes already and have income of about $4,000. My net income on line 31 was only about $600. I do not know if I would qualify for PUA in Florida.
I understand the offices in Florida had to close and will not be available until Monday.
Does anyone have the answer?

The answer will vary from state to state.

Nebraska asked for my "gross" self-employment income. So I sent in copies of my 1099s.

@Insight wrote:

I filed my taxes already and have income of about $4,000. My net income on line 31 was only about $600. I do not know if I would qualify for PUA in Florida.
I understand the offices in Florida had to close and will not be available until Monday.
Does anyone have the answer?[/quote

FL is a big mess. I wish I had an answer for you. I applied April 1st, I didn't make enough in 2019 to even get a 1099, but I did in 2018, but even that amount was not enough to qualify me monetarily wise. I'm still pending. I think once we are denied for regular unemployment, it then is supposed to give us an application for PUA at that time. There is not an option immediately upon filing for PUA, unless that has changed. It was possible for me to reach someone by the phone number listed on the site last weekend. You can try it and ask if there is a direct option for IC's to fill out a PUA application. But they may not be able to answer your question. I asked if not having enough income as an IC was going to get me denied, and they had no clue.

The first thing I would like to make clear is this post only concerns federal taxes and not any state taxes because every state is different.

From the start and at this time the 600 per week is taxable income on your 2020 federal income tax Form 1040. That is not to say Congress may change their mind and submit a bill to change that. And if that happens, the later it happens means IRS forms for 2020 will not be available Jan 1 so submission of your tax return may be delayed.

The fallout from this virus is unprecedented and uncharted territory. Every week brings a multitude of changes and new guidelines. There no answers set in stone. Keep doing your research, google for the most recent information, and do it regularly. Verify the source and be comfortable with it.

@mystery2me wrote:

Apparently the DOL issued guidance to the states the $600 is taxable and should be included on 1099-Gs.

[www.debevoise.com]

Here are links to the original DOL source document. The main letter specifically says unemployment paid to self contractors is considered Federal Pandemic Unemployment Compensation. Attachment 1 describes how all FPUC is taxable on the 1099-G.

[wdr.doleta.gov]

This is the general consensus that I am gathering from all states. There is a minimum dollar amount that each state will give Independent contractors. The feds will add $600 to that. Independent contractors will be eligible to receive the maximum amount from their state if they can prove that they earned a salary that would make them eligible for that if they earned a w-2. For example, in California, I believe that you’d have to earn a minimum of $4,000 per month to be eligible for the max of $450 per week.

As in independent contractor, if you want to request more than your state’s minimum, you’ll need to provide 1099’s, tax forms, etc. I don’t believe that a screen shot of payments from an MSC from Paypal would work if you didn’t claim this income on your taxes. I mean, you could try, but it looks like unemployment offices will be working with the state tax boards to verify as much as they can.

I learned this about California based on an EDD update on Sunday. If you’ve earned any w-2 income then your unemployment payment amount will be based on only that w-2 even if you made more money as an independent contractor. This is actually going to hurt a lot of people who worked a low wage w-2 job and made a lot more money with 1099 work.

@AnonymousGirl wrote:

I learned this about California based on an EDD update on Sunday. If you’ve earned any w-2 income then your unemployment payment amount will be based on only that w-2 even if you made more money as an independent contractor. This is actually going to hurt a lot of people who worked a low wage w-2 job and made a lot more money with 1099 work.

The CA system seems to be continually evolving...but it also incredibly confusing, considering they haven't even launched the PUA portal. I believe the minimum award for standard employment is $40 weekly and it seems like they are going to set all IC's equally at $167 weekly, so the difference between the two might not be all that much, as a low wage job could potentially be in that same range (That the same award you would get for earning $1,450 a month through standard wages).

Still, it seems unfair for people that have combined incomes.

I tried to submit a claim for unemployment on the North Carolina website on the PUA portal.Questions included the address of the last worksite I had worked, name and address of self employment, and the demand for documentation with detailed invoices with company name on it. There was no place to provide a comment that I would have written “ I am a mystery shopper that get assignments by using a website. I report my findings via that website, and several weeks later, I get paid with a PayPal deposit. I am an independent contractor operating under my name, not a business name.” Due to the confusing questions and limited ability to answer anyone the preprogrammed responses available, I guess I will not be getting any benefits.

@SteveSoCal wrote:

@AnonymousGirl wrote:

I learned this about California based on an EDD update on Sunday. If you’ve earned any w-2 income then your unemployment payment amount will be based on only that w-2 even if you made more money as an independent contractor. This is actually going to hurt a lot of people who worked a low wage w-2 job and made a lot more money with 1099 work.

The CA system seems to be continually evolving...but it also incredibly confusing, considering they haven't even launched the PUA portal. I believe the minimum award for standard employment is $40 weekly and it seems like they are going to set all IC's equally at $167 weekly, so the difference between the two might not be all that much, as a low wage job could potentially be in that same range (That the same award you would get for earning $1,450 a month through standard wages).

Still, it seems unfair for people that have combined incomes.

I've since learned that this may be true of all states. PUA is for people who don't qualify for regular unemployment. If you have a w2 job that qualifies you then you cannot apply for PUA as well. PUA will be an entirely different applications. That's why some states are transferring over denied UI applications over to the PUA portals automatically. I do wonder what will happen to people who are applying for unemployment for the first time tomorrow and also happen to have a w2 job that would normally qualify them for regular uemployment.

I also wonder if they will eventually process PUA applications using financial information provided by the applicant. Let's say someone is receiving $167 weekly and once a human looks at the application, they see that the person would normally only eligible for $75 for week. Will the applicant have to pay anything back?

I just received my March-April payment PUA and 2 $600. Massachusetts.
SteveSoCal PUA is only for gig workers, 1099's, contractors.
Not W2 jobs, file as unemployed. You can also be working part time.

Edited 1 time(s). Last edit at 04/27/2020 05:54PM by shopper8.

Has anyone had any luck in FL yet? Mine was processed finally and denied, but no information given nor anything for a PUA application for us.

@shopper8 wrote:

I just received my March-April payment PUA and 2 $600. Massachusetts.
SteveSoCal PUA is only for gig workers, 1099's, contractors.
Not W2 jobs, file as unemployed. You can also be working part time.

Not necessarily true

PUA also covers people who haven't been working a W-2 job long enough to be recognized in the EDD system, or who were offered a job but had not started yet. It also kicks in for people who may have exhausted their regular EDD benefits. It's basically a catch-all for everyone not working who doesn't fit into standard unemployment.

California's website is updated for applying. You'll need "net annual income for calendar year 2019". This is from the info section on why "This information will be used to determine if you are eligible to increase your potential weekly benefit amount. You may be asked to provide wage substantiation (such as, tax returns, 1099, W-2, and/or paycheck stubs)"

Not a problem for most but I'm lazy and haven't turned in my taxes to my accountant. Besides that the form was fairly easy. Mystery shopping is an option when selecting the employment you do as well as compliance xxx (compliance auditor wasn't but search compliance came up with something close).

-NEVERMIND This is for MISCLASSIFIED IC -Wanted to add that their FAQ page says they want your GROSS wages but this site is asking for NET.

When filing for your UI claim, you will be asked for your last employer.
If you own your business or are self-employed, you should list yourself as your last employer.
If you are an independent contractor, you should list yourself as your last employer.

If you believe you are misclassified as an independent contractor instead of an employee, you should list the business you contract with as your last employer. Be sure to include:
The employer name, phone number, and address.
Type of work performed.
Dates worked.
Your gross wages and how you were paid (such as hourly or weekly).

Edited 2 time(s). Last edit at 04/29/2020 02:03PM by wwin.

Anyone have any luck applying through the California website. I keep getting kicked off the site after I fill out the first page or 2.

Im in MI and just received my notice that I qualify!!!
Im not getting a large amt but it should kick in the $600 bonus.
Amen!!

I am determined to get into the MD site at 4 AM on Wednesday, shortly after it is due to wake up from its overnight maintenance rest. . I will sleep in the living room and set my alarm so that I will be able to stumble to the computer.

Honny, if you are out doing an insomnia coffee run, feel free to stop by.

I started it this morning around 7 am, saved my work then came back and finished it about an hour later when I found my income information. I'm sure the site has to be getting hit hard with new filers. Good luck.

@carlsbadguy wrote:

Anyone have any luck applying through the California website. I keep getting kicked off the site after I fill out the first page or 2.

Edited 1 time(s). Last edit at 04/28/2020 08:38PM by wwin.

@carlsbadguy wrote:

Anyone have any luck applying through the California website. I keep getting kicked off the site after I fill out the first page or 2.

It seems to be working now. I just helped a friend to apply. Some pages had to be reloaded once or twice, but ultimately the claim got submitted after about 25 minutes.....

I didn't read the entire thread, so this may already have been addressed. What do I select for the "job type"?

ETA: Under compliance there's a selection I thought was close. "DEALER-COMPLIANCE REPRESENTATIVE COMPLIANCE OFFICERS AND ENFORCEMENT INSPECTORS, EXCEPT CONSTRUCTION"

Edited 1 time(s). Last edit at 04/28/2020 10:33PM by ladymacleod.

@ladymacleod wrote:

I didn't read the entire thread, so this may already have been addressed. What do I select for the "job type"?

ETA: Under compliance there's a selection I thought was close. "DEALER-COMPLIANCE REPRESENTATIVE COMPLIANCE OFFICERS AND ENFORCEMENT INSPECTORS, EXCEPT CONSTRUCTION"

It depends on what state you are in. All states are different.
For example I'm in Idaho and I had to select self employed. and for what the closet they had that matched me was"Merchandise Displayers and Window Trimmers"

I'm in California.