Can I trade stocks and collect unemployment at the same time?

Question

I'm technically not employed by anybody, and I just trade on a highly leveraged day trading account. I thought it would be cool if i could also collect an unemployment check?

Answer 1

Not ethically.

Answer 2

if you make an income from the trading then i suppose you are self-employed. better not to take unemployment.

Answer 3

Trading your account is not a problem. The 1st responder is incorrect. You do not have to be broke to collect unemployment. Any income would be from investing, not from employment.

The problem that might arise is the labor department will eventually contact you for proof that you are actively seeking employment. If you cannot show them a list of positions you have applied for it is likely the benefits will be cut off. Any penalty depends on the state from which you are collecting benefits.

Also, remember that unemployment benefits are taxable.

Answer 4

You can do that, but once you do your taxes, the gov't will find out and you will have to repay everything you collected from unemployment back - you will probably be audited as well.

Answer 5

Yes.  Unemployment insurance is a benefit paid for by your previous employer.  As long as you meet the qualifications for unemployment, including looking for a job, you are entitled to collect your unemployment, no matter how much you make from investment income.  If you have a lot of investment income, your unemployment becomes taxable, but if you're making that much, who cares about a little bit of tax.