Question: I was laid off from my job, so I’m thinking of driving for Uber. However, I want to keep collecting unemployment at the same time. Will the unemployment office know if I drive for Uber?
Answer: If you’re driving or Uber, Lyft, DoorDash, or any other rideshare service, you’re required to report your earnings to the state as part of your unemployment paperwork.
When you file for unemployment, you have to re-certify weekly or biweekly, depending on your state. Although the certification process varies by state, you generally have to report whether you worked, including the number of hours and any wages that you earned.
Failing to report your earnings from Uber or other rideshare services can lead to serious penalties when you’re found out. If discovered, you may be responsible for repaying any fraudulently obtained benefits, and you could face additional fines or even jail time.
And there’s a good chance that you will be found out. Even if Uber drivers in your state are considered independent contractors, Uber (and other rideshare services) will still report your earnings to the IRS. If you’re filing for unemployment and not reporting your earnings, this discrepancy could flag you to be audited. It won’t take much digging for the IRS to determine that you were driving for Uber without reporting it to the state unemployment office.
You may still be able to drive for Uber and draw unemployment
Just because you have to report your earnings to Uber doesn’t necessarily mean you have to give up unemployment. States typically allow you to work up to a certain number of hours or earn a specific amount while still drawing the maximum benefit amount—but the specifics vary widely from state to state.
For instance, in Colorado, you can earn up to 50% of your unemployment benefits and still recieve your full benefit amount, as long as you work less than 32 hours a week. In Maryland, however, your unemployment benefits will be reduced if you earn more than $50 in a week.
Even if you go over those limits, you may still qualify for partial unemployment, meaning your unemployment benefits will be reduced based on your earnings but may not be entirely discontinued. It’s wise to look up the partial unemployment laws for your state before you pick up an extra rideshare shift.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars. Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
Giselle Gomez is an editor with over a decade of experience editing content across personal finance, education, travel, and sports. In editing for Jerry, Giselle’s focus is on making sure content is consumer and SEO-friendly and helping readers understand all things car ownership. In prior roles, she worked as a content strategist, syndication editor, and writer. Her work is featured in AP, NerdWallet.com, BestColleges.com, and more. Giselle holds a master’s degree from Arizona State University.
