I'm very unfamiliar with tax laws or EDD laws. On my unemployment check is says to state any income that you are receiving, besides the unemployment check. I'm confused, when they say income, do they mean job income only??? Or any income?? I have money saved in the bank and I have other investments that money was put in prior to being unemployed. I'm receiving interest payments from my banking accounts, and my investment. But, thats just interest payments. I additionally, sold items on ebay. However, but ebay is more like a hobby or just to generate extra quick cash. I do realize, I'll have to pay report and pay taxes on my interest payments, and the money I made on ebay and my unemployment paycheck. However, I guess my question is on the EDD form, do I report my interest that I earn from my bank and investments, and ebay?? I'm just confused, as to what EDD means by generating income when receiving your unemployment check???? thanks in advance.
Update:The EDD form means unemployment development department. Sorry, should have cleared that up. Its not IRS! But, I do understand that you have to report any salary earned, tips, wages, interest payments, and ebay earned money to IRS. However, to clarify my question.... Do I report my interest payments & earned ebay money on my EDD form?? Does anyone out there know the correct answer?? I tried looking it up on the EDD site but didn't get a clear answer. Same with IRS, didn't get a specific answer....
Answers & Comments
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Sorry that you found the tone of my first answer offensive. It was not intended that way. I've edited it to remove what you found to be unsuitable.
If they state that you must report ANY other income then you must report it. Be sure to identify the source of the income as it's possible that some of it will not affect your unemployment benefits.
It's ALWAYS safer to report something that need not be reported than to withhold something that should have been reported. If they tell you that you don't need to report interest or eBay income then get that in writing. But unless and until you are told not to report something by the EDD folks, report everything.
As far as the IRS is concerned, that's an easy one. Your unemployment compensation is fully taxable so you must report it. Dividends and interest are also fully taxable in most cases so you report those as well.
As to the eBay sales, if you're just selling excess personal "stuff" for less than it cost you there is no need to report it. If you sell anything for MORE than it cost you then that is reportable. If you're running an eBay-based business, all revenues are reportable though you can deduct your reasonable and necessary business expenses; only the net profit is taxable.
Not sure about unemployment, but investment returns are income. I did not receive a stimulus check because I make interest on an inheritance. I would say that you should report any income that you make to the government unless you want the possibility of being audited in years to come for a stupid mistake you made by not reporting a couple hundred dollars.
No matter what anyone has said so far, please listen to this.....yes, they are asking any & ALL income even if someone just handed you a nickel, they want to know about it. Here is the catch, the more you report the less you get in unemployment...which is crazy because umemployment money is money the government already took from your pay check to begin with. So when you are unemployed you are asking for YOUR money back to help you when you need it. As an example, I collected unemployment once, I also am a single parent, I did not claim my son at first when I filled out all of the unemployment forms. The case worker handed me even more forms to fill out to claim my son, which he said I HAD to fill out by law. After another 20 minutes of filling out forms, do you know how much extra I got for having full custody of my son?? $2 dollars a week!!!! Yes, for being a single parent I got a whole $4 dollars a month for my child. After all of this here is my suggestion...ONLY report what they can prove, if you work under the table keep that to yourself. Do NOT report any other income unless there is a pay check to prove it, they can find out about that. It is your money to begin with, it is not like they are giving you something for nothing...it is your money! You paid taxes on it when you first earned it, and after you get it in unemployment the great government we live under will tax it again for you. Take as much money as you can (again, it is YOUR money) and run with it!!
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Earned income - wages, salary and tips.
Go to the ultimate and final source of information concerning your question. irs.gov Do not rely upon answers received on Y/A.
savings and investments aren't income. no wonder you don't have a job.