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.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.