Have a Tax Question? Ask a Tax Expert
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.
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.
thank you for your answer. I need a few more clarifications:
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?
I don't know that answer.
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.
Thank you Stephen - I;ll visit them tomorrow - they are right in my area- impossible to get a hold off on the phone.
the accounting method used for independant contractors is 'cash accrual' correct? Meaning I report it for 2011 when I actually get paid?
No. Cash basis. Accrual is when you report it when earned. You don't need to worry about that. That's a definite.
thank you for your answers. English is not my first language so sometimes I mix up terminlogies.
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.
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.
No problem. You're doing great with the English. Possibly a speed typing course would help. (only teasing)
Happy New Year & Good Luck with you're new job, the dinner, & the boyfriend - he's a lucky guy!
I think I found the answer to your question re the unemployment reporting......................
Here's a section of the Colorado Unemployment regulations related to Self-Employment (ie. 1099 earnings).........
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.
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.
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.
Do you have any follow-up questions or are you all set now?
Stephen, thank you soo much. Have a great day and sorry for being so late on my reply.