I was just laid off from my full time job this last week. I live in a small town with a crappy job market, so it may be a month or more before I can find a new job. I am planning to file for unemployment tomorrow. I would like to continue to work on my websites while looking for another full time job.
Currently I have 1 site that is getting a click or two every day. This has only been going on for a few weeks so I am still under $20 in adsense, and it will probably be a while until I clear the $100 for my first check.
But what worries me is that if that check comes while I am collecting unemployment then Uncle Sam and the IRS might not like that, and then who knows what they would do (fine me?, make me repay unemployment benefits?)
As I understand it I have to report that money (from google) on my taxes so I will basically be admitting to uncle sam that I worked and earned money (from adsense) while collecting unemployment.
Now obviously I do not want to stop building my IM business just because I got laid off and need unemployment to help pay the bills for a few weeks. I know technically working on building websites and making money with adsense is "working"... but I am not collecting a weekly paycheck. My current total adsense earnings for the last 3 months is like $12. But in uncle sams eyes I'm afraid that will be seen as me working and collecting unemployment at the same time which is obviously illegal, no matter how tiny the amount of money.
Advice? Suggestions? Anyone had a similar problem?
I kinda think I'm just being paranoid, but I don't want them to notice my google earnings at the end of the year when I file my taxes and make me pay back all my unemployment benefits or something.
Edit: I live In the USA. Minnesota if it makes any difference.