united-states employment
1099 income during severance period before unemployment
<p>Let's say you are laid off with a month of severance.  In the second week of the severance period, you take up a temp job hanging drywall or something like that, that pays you 1099 with no benefits, and do it that week only.  This job is not proper employment with all the strings attached, just freelancing.</p>

<p>Are you obligated to report that income when filing for unemployment towards the end of the severance period, when you become eligible for it once the severance runs out?  I understand if it were during unemployment, you would have to report it and your weekly claim would be adjusted.  You also have to report severance so the unemployment agency can calculate your eligibility date.  But this is 1099 income earned during the severance period.</p>

<p>It depends on the nature of your severance package, and ultimately on how the unemployment agency decides to count that.</p>

<p>The easiest way to handle this is to wait for your determination of eligibility.  If you earned 1099 income before the date it is determined you are/were eligible to claim unemployment then it does not have to be reported to the unemployment agency.  However, if earned after your unemployment eligibility date then you do have to report it.</p>
