A self employed person had to close the business for several weeks due to Hurricane Ike in Texas. The person was provided with a twice monthly check to compensate for the loss of business. The compensation was not for the loss of the roof, car, etc., just the loss of business.
I assume that this should be treated as taxable income and the person will receive a W2-G showing the amount of income. Do I have that correct?
I gather she is a Blackjack dealer in El Paso?
Who provided this self employed person with money? Why?
Whoops!! I should have said 1099-G which has been received.
It came from the Texas Workforce Commission. It was for the loss of business due to hurricane Ike. Since the 1099-G was received, I believe we have the answer to the original question which is it should be treated as taxable income.
For clarification, some of the unemployment compensation will be paid in
2009. It appears that as long as the amount paid in 2009 is under $2400, it will not be subject to income tax based on the "stimulus" package signed today.Have something to add? Share your thoughts — no account required.
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