Fostering Unemployment

Today TaxMama hears from Lisa in Virginia. She tells us, “I have spent the last 4 years as 1099 contracted foster care provider. The contract was a signed contract renewed every six months; the current contract expires 6-30-10. Our live-in individual (client) moves out 5-2-10. His parents are moving him to an adult group home. I am effectively unemployed as there are no replacement clients in the pipeline. This was a non-taxed job under Federal Code Section 131. But prior to this position I have always been employed and paid taxes (i.e. six years as a mortgage broker prior to provider job). I live in Virginia. Is it possible to file & collect unemployment through 6-30?” 

Hi Lisa,

That’s  a shame about losing your foster child. You probably get pretty close to those children.

You say that you’re on contract and you get a 1099, with income that isn’t taxed. As I understand it, and remember unemployment rules are different in each state, you only get paid unemployment benefits if you had a job that paid in on your behalf.

If it’s been 4 years since you had such a job, you probably no longer qualify. But check with your state’s unemployment department. They are the final word on the subject. The worst thing they can do is say “no” right?

Rita Lewis, an EA in CT adds that you might qualify, if you were an employee and earned wages during four of the last five quarters or during an alternate base period, you might be eligible –

And remember, you can find answers to all kinds of questions about unemployment and other tax issues, free. Where? Where else? At

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