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Just got laid of from my day job...unemployment benefits + (beginning) IM business, what to do?

by MirandaOnline
16 replies
Hi all, Ive been lurking here for a few months and learning a TON. This place is so helpful I just wish I would have found it years ago. Anyway I have a few questions that I was unable to find the answers to by searching so I thought I'd ask.


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.
#beginning #benefits #business #day #jobunemployment #laid #unemployment
  • Profile picture of the author davidjames42973
    Take a deep breath and relax....

    It is not illegal to make money and collect unemployment. As long as you tell them that you received income there should be no problem.

    I don't know how far along you are with internet marketing, but I suggest you learn how to build niche websites if you're just starting out. By building these sites you're not going to "all the sudden" start making enough money to live off of, but within time the sites will bring you passive income and will eventually bring you some good money. Maybe even enough money to live off of!

    Good luck and I wish you the best.
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    • Profile picture of the author pdom
      hey man it's all good. i'm pretty sure you need to be making above a certain amount of income in order for the govt to take some..might be 500/year but don't quote me on that!

      Check around online, find a phone number to call and ask them. I'm sure you'll be fine, since it is a relatively small amount.

      Good luck with your ventures! keep us updated on how everything goes


      Cheers,
      Patrick
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    • Profile picture of the author ladywriter
      On the unemployment claim form I think there's an option for 'self-employment' where they ask you how many hours you worked and not the $$?

      I'm not sure how that affects the unemployment check though, or if you have to be in a sanctioned 'self-employment program'. Perhaps you can ask but get ready to get the run around because explaining online income can be difficult.
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    • Profile picture of the author MirandaOnline
      Yea thats what I was thinking, that by the time my sites actually start making real money I wont be on unemployment. You never know with uncle sam though better safe than sorry.

      Anyone have any IM tax advice for the USA? At what point (how much $$$) do you start to worry about reporting it to the IRS?

      Since google requires my tax info (SS#) I assume that they are also informing the IRS of my earnings, so its not like I can just ignore it and not report my IM earnings. Or can I?


      BTW thanks for the lightning fast responses... amazing

      gonna start asking more questions here


      Originally Posted by davidjames42973 View Post

      Take a deep breath and relax....

      It is not illegal to make money and collect unemployment. As long as you tell them that you received income there should be no problem.

      I don't know how far along you are with internet marketing, but I suggest you learn how to build niche websites if you're just starting out. By building these sites you're not going to "all the sudden" start making enough money to live off of, but within time the sites will bring you passive income and will eventually bring you some good money. Maybe even enough money to live off of!

      Good luck and I wish you the best.
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      • Profile picture of the author davidjames42973
        Originally Posted by MirandaOnline View Post

        Yea thats what I was thinking, that by the time my sites actually start making real money I wont be on unemployment. You never know with uncle sam though better safe than sorry.

        Anyone have any IM tax advice for the USA? At what point (how much $$$) do you start to worry about reporting it to the IRS?

        Since google requires my tax info (SS#) I assume that they are also informing the IRS of my earnings, so its not like I can just ignore it and not report my IM earnings. Or can I?


        BTW thanks for the lightning fast responses... amazing

        gonna start asking more questions here
        Once you make over $600 you suppose to claim it to the IRS.
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      • Profile picture of the author ladywriter
        Originally Posted by MirandaOnline View Post

        Since google requires my tax info (SS#) I assume that they are also informing the IRS of my earnings, so its not like I can just ignore it and not report my IM earnings. Or can I?
        Not a tax expert and I don't want to muddy the waters but I believe that a W-9 is for the companies to cover their butt insofar as who they have paid out money to. In order for it to matter for your personal taxes, I think it has to be over that 500/600 mark.

        But there's also the separate issue of your unemployment benefits being affected by what you make. I know when I was on partial unemployment, they subtracted my wages from my unemployment check. Since you are not an employee of Adsense (or whoever you do work for online), it would qualify as self-employment, which as I said, not sure how to handle.
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  • Profile picture of the author Bill Guthrie
    Will unemployment benefits be enough to sustain you financially? I'm assuming if you're going down the Adsense path you're prepared for a slower income path. There are quicker pathways.

    Sorry to hear about you getting laid off. It's still a fragile economy.
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  • Profile picture of the author gefflong
    If you really want to earn some money online within a decent amount of time, I would suggest trying affiliate marketing or selling a service of some sort.

    IMO, adsense is a very rough (and unpredictable) way to start out making money. It IS how I started out, but if I could go back and start everything over again, I wouldn't waste my time on that.

    I'm not saying adsense is a waste of time, I'm just saying for me, it was a big waste of time as I was better at other things and made a lot more money when I moved away from that.
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  • Profile picture of the author swilliams09
    Sell a service. ASAP. It's the quickest way to get money into your pocket. Write articles, backlink, SEO serivices, web design, graphics, (don't do video, that's my niche!), but seriously, sell a service ASAP.

    Also, if you just lost your job and you need money to live off of it goes without saying, trim the fat off your budget, cut all unnecessary expenses, and sell everything you don't need on ebay. I sold my whole music studio when I lost my job. 8 years of DJ and studio equipment gone. I realized I hadn't written a new song in almost 3 years and I was just holding on, that money is helping me survive until I get all of my websites off the ground. Good luck.
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  • Profile picture of the author AprilCT
    You will have to discuss this when you apply for unemployment compensation. Your best bet would be to call or make a face to face appointment so your situation can be discussed and find out your options. I am not from your state, and am unable to help you. You have to be truthful, or, there are likely stiff penalties.

    The requirements likely vary from state to state and I believe in at least some of them, self employment could be a problem.

    Sorry to hear you lost your job.
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  • Profile picture of the author mari annB
    Just relax and take a deep breath. You can find job and think positive. What you are doing isn't illegal anyway.
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  • Profile picture of the author reapr
    It is not illegal as long as you report it. What they will more likely want to know is if your activities of making money interfered with your ability to look for work which is your primary job. Of course you should always consult with an attorney.
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  • Profile picture of the author John Trader
    My $.02... Unless I read your post incorrectly, at the income and time you've put in, I feel your unemployment benefits will run out before you will make a sustainable income in IM, *doing what you're doing*. I know that's a harsh statement, but the stakes are too high for you, and sugar-coating it would seem irresponsible.

    I would think in terms of what services you can offer as a marketer (what are you good at?) and dive into your personal network of business owners; help local business owners maximize their web presence. That will not only put you in front of business owners and people in a position to hire you, but will put cash in your pocket now, and create monthly income streams for you. Yes it will offset your unemployment benefits, but you'll have an actual business at that point with tax deductions, etc.

    You might also consider creating a "jobs board" for your local market and have a free members area where you'll post interviews with local executives, head hunters and so on about how to get work, what to do if you're laid off, etc. This will give you a mailing list to sell to, and if you build the list large enough with measurable response rates, you'll also be able to solicit advertising revenue.

    Finally, if the site itself gets traffic, you have local advertising opportunities -- everyone from job-related vendors to business networking groups, etc. After you've done all that, you have a web property you can sell.

    Good luck - let us know how you do.
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  • Profile picture of the author Doran Peck
    As mentioned by a couple posters already ....go contact local businesses and sell a service...you will make money faster doing that....and quite frankly, you will make much more money.

    The folks plugging away at perfecting their online business havn't quite figured out that the real money...the quick money ...its all offline.
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  • Profile picture of the author TrumpiaTim
    I'm sorry to hear about your recent layoff, I would recommend looking into both Internet and Offline Marketing.

    Mobile Marketing is picking up a lot of momentum, so I'd recommend that you visit the Trumpia website and learn more about mobile marketing as it's a great service to offer your local clients.
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