Trading for years, laid off day job, can I still collect unemployment?

I was recently laid off and I am currently collecting unemployment. I've been trading for a few years already and have been profitable. Can I still collect unemployment? Any help would be greatly appreciated.

 

My guess would be yes. But I honestly don't know for sure.

 

If you're profitable, why are you seeking unemployment? It's $400 a week.

Unless your profitability is marginal and nowhere near enough to live on. In that case, you can apply for unemployment and work on become a profitable full time trader. I would suggest staying away from taking any checks from your account

 

I dont take any checks from my account, just let it grow. My unemployment is 1060 biweekly so its nothing to scoff at. Anyone in a similar situation? Thanks for the replies guys.

 

If your trading is set up as a business and recognized as such with the IRS, you can't collect unemployment because you're earning income from your own business.

But if you're simply treating your trading income as short or long term capital gains, then you should check with your state to find out if that counts as earned income.

 

did you consider calling your unemployment office?

 

Yeah, I was trying for about an hour and the system hung up on me every time because the wait time was too long.

 

Rules on unemployment varies from state to state.

When I lived in New York City, I was laid off but I was also trading at the same time. All my trading income was reported as capital gains. I did not have any problems collecting my full six months of unemployment.

Capital gains is capital gains. There are many people who lost their jobs and yet have capital gains so they all should qualify for unemployment.

Now if you use a corporation for your trading, my guess is you will not be able to claim unemployment.

Better to call your local unemployment office as rules are different and may have even changed.

 

The answer is simply yes as long as you do not have trader status for your taxes.

It's no different than any other investment gains such as dividends, short term cap gains, long term cap gains , etc.

THink about it, would you lose your unemployment if you sold 1000 shares of IBM for a 20K profit? Or if you recieved a dividend check? Or sold your house and had a gain? Of course not because it's not earned income.

 

Thanks for all the replies, I am going try to get in contact with my unemployment office tomorrow (hopefully). I live in NJ btw. What is trader status on your tax return mean? I have a day trader account if thats what you mean (margin, 25k min etc...) I never had to file a special return before.