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Ingrid Larsson

NY unemployment self-employment income reporting - gross or net sales for claims?

I've been running a small Etsy shop while collecting NY unemployment benefits and I'm confused about income reporting. When I certify each week, should I be reporting my gross sales (total amount customers paid) or my net income after Etsy fees, shipping costs, and materials? The certification question just asks about 'income' but doesn't specify. I'm worried about making a mistake that could lead to an overpayment issue later. Anyone know the correct way to report this for NY unemployment?

u should report net income not gross. thats what i did with my side gig. if u report gross then ur basically saying u made more than u actually did

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Thanks! That makes sense to me too. But I'm nervous because I've been reporting gross just to be safe. Do you think I should call and tell them I've been overstating my income? Or just switch to reporting net going forward?

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According to NYSDOL guidelines, you should report your net business income when certifying for benefits. This means your income after deducting business expenses like materials, fees, and shipping costs. Keep detailed records of all your expenses and income in case they request documentation later. The reason for reporting net income is that unemployment benefits are meant to supplement what you're actually earning, not your gross sales which don't reflect your true earnings.

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Thank you so much for the clear explanation! I've been doing it wrong then. I've been reporting gross sales which means I've been getting less in benefits than I should have. Should I try to get this corrected for past weeks?

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Ava Williams

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Same thing happened to my cousin last yr. He didn't get it fixed but was annoyed cuz he lost out on $$$. Proly not worth the hassle unless it's a big difference.

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Raj Gupta

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I had the same issue with my freelance work! You definitely report NET income, not gross. For a business, this means what you actually pocket after all business expenses. This is similar to how taxes work - you wouldn't pay income tax on money that went straight to business expenses. If you've been reporting gross income, you've actually been receiving LESS benefits than you're entitled to. You can request a backdate adjustment by calling NYSDOL, but getting through can be nearly impossible.

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OMG getting through to NYSDOL is THE WORST!!! I tried for THREE WEEKS straight calling everyday multiple times a day last month for a similar issue and could NEVER get through!!! It's like they don't want to help people!!!! So frustrating!!!!! 😡😡😡

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TechNinja

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I've worked in accounting for years and can confirm you should report net income for unemployment reporting. This means your profit after deducting legitimate business expenses from your gross sales. Keep detailed records of all business expenses including: - Platform fees (Etsy fees) - Materials costs - Shipping expenses - Packaging costs - Any other direct costs If you've been reporting gross instead of net, you've essentially been reducing your benefits unnecessarily. You can request an adjustment by contacting NYSDOL with documentation showing your actual net income for those weeks.

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Thank you for this detailed breakdown! I've definitely been reporting wrong then. I'll start tracking all these expenses properly. Do you know if there's a time limit on requesting adjustments for past weeks? I've been doing this for about 2 months now.

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TechNinja

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You generally have one year from the benefit week in question to request adjustments, so you're well within the timeframe. Just make sure you have good documentation of your actual expenses when you contact them.

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Ava Williams

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my brother had 2 report his doordash earnings and he just put whatever showed up in his bank account lol

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Raj Gupta

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That's actually not correct for self-employment income. What shows up in your bank account from DoorDash would be gross earnings before expenses like gas, car maintenance, etc. He should be deducting those business expenses to report his actual net profit.

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I'm so confused about all of this too!!! What if some weeks I lose money on my business? Do I report NEGATIVE income?? Does that mean I get MORE unemployment that week??? The system doesn't let you enter negative numbers!! This is all so complicated I'm scared I'm going to get in trouble no matter what I do!!!

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If you had a week where your business expenses exceeded your income (a net loss), you would report $0 income for that week. You're right that the system doesn't allow negative numbers. A business loss doesn't increase your unemployment payment above your standard weekly benefit amount, but it does mean you should receive your full unemployment benefit for that week.

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idk why everyone making this complicated, just report what you actually MAKE not what customers pay you. if a customer pays $20 but etsy takes $5 and shipping was $7 and your materials cost $3 then you made $5. thats what u report

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Thank you everyone for the helpful advice! I'm going to start reporting my net income going forward, and I'm going to try to contact NYSDOL about getting an adjustment for the past 8 weeks where I overstated my income. I'll keep better records of all my expenses too.

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Good luck with the adjustment! If you have trouble getting through on the phone, seriously consider using Claimyr. It saved me hours of frustration when I needed to fix an issue with my claim. Trying to call NYSDOL directly is practically impossible these days.

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i know someone who got in huge trouble for reporting wrong. they made him pay back like $8000! but that was cuz he didnt report ANY income not cuz he reported wrong type

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Raj Gupta

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That's an important distinction. The OP has been OVER-reporting income (reporting gross instead of net), which means they've been receiving LESS in benefits than they were entitled to. This is very different from under-reporting or not reporting income at all, which can indeed lead to overpayment notices and penalties.

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Sienna Gomez

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As someone who's been dealing with self-employment income reporting for a while, I can confirm what others have said - definitely report NET income. I run a small online business and learned this the hard way after initially reporting gross sales. For your Etsy shop, calculate: (Total sales) - (Etsy fees + shipping costs + materials + any other direct business expenses) = Net income to report. Since you've been over-reporting for a while, you're likely owed money from previous weeks. I'd suggest documenting all your actual net income for those past weeks before calling NYSDOL. Having clear numbers will make the adjustment process smoother if you can actually get through to someone. The key is showing them you've been conservative and honest, just using the wrong calculation method. Keep detailed spreadsheets going forward - it'll save you headaches later!

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This is super helpful! I'm new to all this and was also confused about gross vs net reporting. Your spreadsheet suggestion is great - do you have any tips on what specific columns to track? I'm thinking sales amount, Etsy fees, shipping, materials... anything else I should be documenting for unemployment reporting purposes?

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