Looking to potentially re-begin day trading while collecting unemployment. I have day-traded in previous years, but stopped due to unfavorable market conditions. It seems I can still collect UI benefits while day-trading so long as I don't file as a business [TTS]? If that's the case, how can I make sure I'm not defined as a TTS?
I was in NYC prop trading in the '90s and collected unemployment for a while. You are not a business unless you have a track record of being profitable. Essentially I was in a partnership that cost me $1500/month to learn the ropes. What I have learned amounted shit. We were supposed to scalp 1/8 and 1/4 pre decimalization, not the best business model for a trader. I found out later that the firm got huge rebates from the floor/clearing company and never gave us a dime. We were encouraged to trade a lot, "scalping" if you can call it that.
That was the model dude, 20-25 commish a side too. 1000 share minimums In some ways it was easier to make $$$$ though.
You can go ahead and trade with no issues, you don't get tts, you have go out of your way and declare yourself a trader, and that you have to ahead of time, for example you would send a letter this year to declare for 2021.
Thanks! It seems TTS would be the only real issue here. So I wanted to make sure I can just trade as an "investor" or hobbyist and not be labeled a trader (business/self-employed)
We never paid near $20 for juice. I can't remember the juice. But we as a whole traded up a storm, one guy made $50,000 a month trading bond ETFs large. Never got a dime from the rebates.
It's really simple. If you are collecting UI, it means you had a job where you were getting a W-2 and you were laid off. If you start to day-trade, your income from all that would be taxed as short-term capital gains, I believe? There is no need to declare an occupation on your 1040 form. You are simply "Unemployed", which you are, if you do not employ yourself. Best to speak with a CPA on this though, to be sure.
don't day trade unless you have good track record! Do anything other than day trading or do nothing while collecting unemployment benefits!
Buying and selling stocks for yourself does not mean you are "employed". If you are out of work for a year while collecting unemployment, and decide to sell some positions you have in your portfolio, does that mean you are now "working" as a trader? Employed? *heh* Just listen to the Dude, man!
It could be problematic in Illinois. They require you to recertify every two weeks. It's fairly late in the year so your broker will file at yearend. Do people misrepresent their status? Plus your previous employer will get a notification and an opportunity to contest the benefits. Plus you are required to look for work.