How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Stephen G. Your Own Question

Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4037
Experience:  Extensive Experience with Tax, Financial & Estate Issues
30050794
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

Hi, after 4 month of unemployment I just got an independant

Resolved Question:

Hi,
after 4 month of unemployment I just got an independant contractor gig - working 5 hours a day for 5 days the last 5 days in December. The client is being billed once a month and will get a invoice in January for December work.
Do I need to report this in 2010 taxes or when I receive the money in January (2011)?
Thank you soo much .
Nicole
Submitted: 3 years ago.
Category: Tax
Expert:  Stephen G. replied 3 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

You don't need to report it until you receive the money. The good news is that you'll also pay less in self-employment taxes as the rate has been reduced for 2011.

Customer :

Stephen,

Customer :

thank you for your answer. I need a few more clarifications:

Customer :

Colorado is rough righ now - I have not been able to find a full time job and I am still collecting unemployment (I have only once iny my 18 years collected unemployment for 3 months) right now. Today I need to file for unemployment 12-26 - 1-1-2010 and I have worked 5 hours a day during that period and will get paid for that in January 2011. Do I need to put that on my claim today?

Stephen E. Grizey :

I don't know that answer.

Stephen E. Grizey :

You may need to check with the unemployment people on that one. I'd be concerned that if something happened & you didn't get paid, it would be a "double whammie" so to speak.

Customer :

Thank you Stephen - I;ll visit them tomorrow - they are right in my area- impossible to get a hold off on the phone.

Customer :

the accounting method used for independant contractors is 'cash accrual' correct? Meaning I report it for 2011 when I actually get paid?

Stephen E. Grizey :

No. Cash basis. Accrual is when you report it when earned. You don't need to worry about that. That's a definite.

Customer :

Stephen,

Customer :

thank you for your answers. English is not my first language so sometimes I mix up terminlogies.

Stephen E. Grizey :

Check back here later; if I have a minute during the Patriots game :] I'll see if I can find out anything about the unemployment question. No guarantees on that though.

Customer :

Thanks Stephen, please enjoy your game and I have to go to an early dinner with bf and mother today. I'll be back tonight.

Customer :

Nicole

Stephen E. Grizey :

No problem. You're doing great with the English. Possibly a speed typing course would help. (only teasing)

Stephen E. Grizey :

Happy New Year & Good Luck with you're new job, the dinner, & the boyfriend - he's a lucky guy!

Stephen E. Grizey :

Nicole:

Stephen E. Grizey :

I think I found the answer to your question re the unemployment reporting......................

Stephen E. Grizey :

Here's a section of the Colorado Unemployment regulations related to Self-Employment (ie. 1099 earnings).........

Stephen E. Grizey :

The very last paragraph seems to be on point to your question and basically says you need to report the self-employment earnings on at least an estimated basis for the week that you actually perform the work.

Stephen E. Grizey :

Please remember to "ACCEPT" my answers, it is the only way we get credit for our work. Bonuses, where you feel they are appropriate, and Feedback are always most appreciated. Thanks again for using our service.

Stephen E. Grizey :

2.5 SELF-EMPLOYMENT 2.5.1 Statutory Reference: 8-73-107, C.R.S. 2.5.2 Effect of Self-Employment Activities. A claimant may be disqualified from receipt of benefits due to self-employment activities where such activities result in the claimant restricting his or her availability for work or limiting his or her search for work. 2.5.3 Self-Employment Activities. For the purposes of this section, “self-employment activities” shall include all activities of a claimant that relate to the formulation, development, or operation of any business or income-producing undertaking. 2.5.4 Matters to be Considered. In determining whether or not a claimant's availability for suitable work is restricted or a claimant's search for work is limited by means of his or her selfemployment activities, the division may consider, in addition to other relevant factors, the following: ;1 The nature of the claimant's self-employment activities. ;2 The nature of the claimant's previous employment. ;3 The amount of time required for the claimant's self-employment activities. 4 Whether the claimant's self-employment activities occur at the normal time the claimant.would be employed or seeking employment; 5 Whether the nature of the claimant's self-employment activities require regular hours of.work; 6 Whether the nature of the claimant's previous employment required regular hours of.work; 7 The extent to which the claimant's self-employment activities coexisted with the.claimant's previous employment; ;8 The extent of the claimant's financial commitment to the self-employment activities. 9 Whether the claimant has rented or purchased space to be used for self-employment.activities; ;10 Whether the claimant has arranged for or obtained a business telephone. ;11 Whether the claimant has obtained any required licenses or permits. ;12 Whether the claimant has advertised for customers. 13 The extent to which the claimant's self-employment activities required him or her to.supervise or direct other individuals. 2.5.5 All Requirements Must be Met. Notwithstanding any provision of this section, a self-employed claimant, in order to qualify for benefits, must satisfy all of the eligibility conditions enumerated in 8-73-107, C.R.S. 2.5.6 Reporting Earnings. A self-employed claimant must report all monies earned during the week(s) for which benefits are claimed regardless of whether or not such earnings have been received. Where earnings have not been received, the claimant must provide an estimate of monies earned and, thereafter, must report actual earnings, when received, if the estimate was incorrect.

Stephen E. Grizey :

Nicole

Stephen E. Grizey :

Do you have any follow-up questions or are you all set now?

Customer :

Stephen, thank you soo much. Have a great day and sorry for being so late on my reply.

Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 4037
Experience: Extensive Experience with Tax, Financial & Estate Issues
Stephen G. and 2 other Tax Specialists are ready to help you
Expert:  Stephen G. replied 3 years ago.

No problem. Hope you had a good dinner with BF & mother. Thanks for the accept & kind words. I was glad to be able to locate the unemployment information for you. Good luck & happy New Year. SEG

No need to respond to this...........

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.