Freelancers and unemployment insurance
Question: i am a self- employed artist. all of the news about record numbers of people collecting unemployment benefits has me wondering if these benefits are also available to self-employed people whose incomes dry up. i am currently managing to pay all of my bills and even save little bit of money but am concerned about what i will do in the future if i am unable to earn enough money/find a job. thanks, jenny, minneapolis, MN
Answer: One of the drawbacks of being self-employed is that you’re usually ineligible for unemployment insurance once work dries up. The most common reason why artists operating as a freelance sole proprietor are excluded is that they file their income on a Schedule FC tax form. Yes, you get to take tax deductions as an operating business, but in most cases you can’t claim unemployment insurance.
I want to emphasize the phrase, “in most cases.” The rules surrounding unemployment insurance are complicated. So, if you ever do find yourself in need of filing, check with a professional. You can get good information at online resources geared toward artists in most major metropolitan areas.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.