Self-employed workers applying for unemployment benefits may get less than they think because of how they report income.
Using the net-income formula could result in a big difference in unemployment pay for some self-employed people.
Deducting these costs, which could amount to a lot of money, reduces net income and, by extension, their overall tax burden. But it could also reduce unemployment benefits. Gig workers such as Lyft and Uber drivers are currently organizing with the union through its Mobile Workers Alliance project.
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