Can you collect unemployment and day trade stocks.If you make money day trading will it be taking from your unemployment?

Answer 1

The stocks that you have currently being traded are assets and are not liquid, just like a house would be an asset that appreciates but is not considered cash-in-hand. If the asset remains in a non-liquid form but increases in value, even if it's traded, this should not affect unemployment insurance benefits. Capital gains occur when the stock is sold for a higher price than what it was originally purchased for and does become liquid, i.e. becomes cash-in-hand. Capital gains do have to be reported to the IRS and are taxed. If the capital gain is liquidated (sold), such may be considered as income that may affect unemployment insurance benefits dollar-to-dollar, but to make absolutely sure that the investment liquidation is privy to a reduction in benefits, I would call your local ESC office. I could not find anything in WA's ESC laws that state, specifically, the relationship between capital gains and unemployment compensation...then again, more than likely, not many people have this issue. At any rate, again, I would call the local ESC and I would think about calling your CPA to discuss the difference between how each are reported at the end of the year.

Answer 2

You can collect unemployment and day trade. However, according to the law, you must report the income you receive from day trading, and as such, adjustments to your unemployment will be made.