How to report self-employment income on DEO application after COVID killed my nephew's cash business?

Your nephew needs to report the self-employment under the "Employment History" section. When it asks for employer name, he should put "Self-Employed" and then his business name (if he had one). For address, use his home address. The tricky part is documentation - since it was cash, he should have filed Schedule C with his taxes showing that income. DEO will likely request his tax returns to verify the self-employment income. Did he file taxes showing this income?

i was in same boat last year... had w2 job then my side gig. DEO doesn't like self employment much tbh. they make it super complicated. just put self employed in the employer field and ur home address. but if he didnt report on taxes hes kinda screwed honestly

Has he checked if he's even eligible? If his last W2 job was back in 2019, he might be outside the base period for regular unemployment. The base period is the first 4 of the last 5 completed calendar quarters before filing. So depending on when he files in 2025, that 2019 W2 job might not even count.

Let me help clarify the process since there's some confusion in the comments. For DEO unemployment claims involving self-employment: 1. Your nephew should absolutely report ALL employment, including self-employment, on his application 2. In the employment section, he'll select "Self-Employed" as the employer type 3. He'll need to provide proof of income - this is typically tax returns (Schedule C), 1099s, or business records 4. If his self-employment wasn't properly reported on taxes, he can still submit bank statements showing deposits or client payment records 5. For regular unemployment (RA), DEO primarily uses W2 wages in the base period to determine eligibility Since his W2 employment ended in 2019, he may have difficulty qualifying based on that alone. DEO will make a determination based on all information provided.

DEO's phone agents can actually help with complex applications like this. After struggling with my mixed income situation for weeks, I used Claimyr (claimyr.com) to get through to a live agent quickly instead of being hung up on all day. They have a video demo at https://youtu.be/UzW_hbUy-ss?si=zORd51jeq1GX5Ldj that shows how it works. The agent walked me through exactly how to report my self-employment on the right screens. Honestly worth it for complicated cases like your nephew's.

I work with unemployment claims, and I want to point out something important: DEO considers misreporting income as fraud, intentional or not. Your nephew should report ALL work history accurately, even if he's worried about the tax reporting discrepancy. Here's why: - DEO can and does cross-reference with IRS records - If discrepancies are found after benefits are paid, they will issue an overpayment determination - Fraud penalties can include repayment of benefits plus a 15% penalty - Multiple instances can result in disqualification from future benefits Having the cash app receipts is good - definitely upload those. But be prepared for DEO to send a fact-finding questionnaire about the self-employment.

It's so frustrating that the system basically punishes people for trying to hustle and make money on their own!! My cousin went through this and DEO made it impossible - wanted all these docs nobody keeps for cash jobs. The whole thing is designed for regular W2 employees and everybody else gets screwed!

I went through this EXACT situation last year!!! What worked for me was reporting my self-employment accurately on the DEO application under employment history. I uploaded a signed affidavit explaining my cash business, along with a reconstructed income log showing what I earned each month (even though I didn't have perfect records). DEO sent me to adjudication for about 3 weeks, then approved my claim. They calculated my benefit amount mainly from my W2 job but at least recognized my full work history. Tell your nephew NOT to hide the self-employment - just be honest about the record-keeping limitations.

To answer your latest question - yes, consulting with a tax professional before filing for unemployment would be the best approach. Here's what I recommend: 1. Your nephew should meet with a tax professional to discuss filing amended returns for any years where self-employment income wasn't properly reported 2. After addressing the tax situation, then proceed with the unemployment application 3. Be completely transparent on the application about all employment history 4. Upload documentation including: any available tax records, client receipts, bank statements, and a written explanation This approach addresses both the tax compliance issue and sets up the unemployment claim correctly. Though it might delay benefits slightly, it prevents much bigger problems down the road.