What happens to your unemployment benefits if you make profits in forex | Forex Factory

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What happens to your unemployment benefits if you make profits in forex

  • #1
  • First Post: Feb 22, 2010 1:31pm Feb 22, 2010 1:31pm
What happens to your unemployment benefits if you make profits in forex ?
If you had a full time job and did forex part time, then lost your job and filed for unemployment, what happens if you make profits while being on unemployment ??
I found out that if you cash in your 401k while on unemployment, they consider that income and will deduct that amount from your unemployment benefit.
It's NOT GAMBLING when the odds are in your favor
  • #2
  • Feb 22, 2010 1:55pm Feb 22, 2010 1:55pm
Quoting User Name
What happens to your unemployment benefits if you make profits in forex ?
If you had a full time job and did forex part time, then lost your job and filed for unemployment, what happens if you make profits while being on unemployment ??
I found out that if you cash in your 401k while on unemployment, they consider that income and will deduct that amount from your unemployment benefit.
Unemployment benefits is an insurance benefit and is calcutated based on the last 4 quarters of the last 5, that means, the immediate proir quarter is not taken into consideration.
The reason you are getting unemployment is because you lost your job and if you are claiming forex as your new job or self employment then, unemployment benefits are not paid. Also your net gain or loss will be determined at the end of the year with a 1099B from your broker. If you are still looking for a job, you are entitled to unemployment and continue your forex in your spare time.
401 K has nothing to do with unemployment because that is like your savings account. The question they ask is if was vacation paid, not if it is a retirement account withdrawal. If you use your 401 k, then you will pay taxes on the money and if your are under 59 1/2 years of age you will have to pay 10% penalty to IRS at the end of the year in your income tax prep.
Hope this helps
  • #3
  • Feb 22, 2010 2:15pm Feb 22, 2010 2:15pm
thanks for that answer.

I just lost my job 3 days ago,

Hypothetically speaking, lets say that at the end of the year, I collected $30,000 from unemployment, not claiming forex as my full time job, but still still made $35,000 in forex that year doing it on the side. I know I get taxed on the forex profits, but

would I have to pay back the $30,000 unemployment since the forex profits exceeded my unemployment benefits ??

and if during the whole year I was looking for a full time job, but weren't able to find it.
It's NOT GAMBLING when the odds are in your favor
  • #4
  • Feb 22, 2010 6:51pm Feb 22, 2010 6:51pm
Every week you will have to certiify and answer the same questions Did you work or earned any money as self employed?
Then you have to answer correctly
Unemployment is 6 months and never will be 30,000 a year, depending in what state you live it will be between 200 and 450 a week no more than that

Quoting User Name
thanks for that answer.

I just lost my job 3 days ago,

Hypothetically speaking, lets say that at the end of the year, I collected $30,000 from unemployment, not claiming forex as my full time job, but still still made $35,000 in forex that year doing it on the side. I know I get taxed on the forex profits, but

would I have to pay back the $30,000 unemployment since the forex profits exceeded my unemployment benefits ??

and if during the whole year I was looking for a full time job, but weren't able to find it.
  • #5
  • Feb 22, 2010 7:09pm Feb 22, 2010 7:09pm
Ok, you're right it is six months, but I think you can file for an extension for up to 1 or 2 years. I was advised I should get $600/wk plus another $25 I multiplied that by 52 weeks and came up with a little over $30,000.
Cost of living is very expensive where I live, $625/wk is not something I can live on without dipping into savings and I'm single without kids.
It's NOT GAMBLING when the odds are in your favor
  • #6
  • Last Post: Feb 22, 2010 7:11pm Feb 22, 2010 7:11pm
Quoting goldbird22
Every week you will have to certiify and answer the same questions Did you work or earned any money as self employed?
I wonder what happens if I make money one week and lose money the next week. I have to call them tomorrow morning and get other details, I called this afternoon and the answering machine said they are busy and not accepting calls and to try again later
It's NOT GAMBLING when the odds are in your favor
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