The amount you can earn through part-time or temporary work while on unemployment depends on your state's policies.

In many cases, you can still receive partial benefits, provided that your earnings don't exceed the amount that you are making in benefits. In all cases, however, it's important that you report your earnings to avoid being charged with unemployment fraud.

Working while on unemployment is a way to supplement your unemployment income, network, improve your job skills and possibly even get hired for full-time work. Each state has its own policies on calculating unemployment benefits for recipients who work part-time, temporary or odd jobs.

Many states allow workers to collect unemployment benefits until their total earnings equal or exceed what they collect on unemployment.

Unemployed and broke? Top 10 income-hacker ways to make money sitting on your heifer | PeerRenters

Unemployment agencies require you to report your earnings when you certify for your benefits. The unemployment agency then uses this information to determine whether you are eligible for full or reduced benefits.

If your weekly earnings exceed your current benefit amount, you usually won't receive benefits for that week. Your state's unemployment agency can explain what types of income must be reported.

For example, some states may require you to report barter, commissions from direct selling products like Avon or Tupperware or jury duty payments as income.

Your state has a formula for reducing your benefit income when you earn wages though in some states, a significant amount of money may be exempt from counting against your unemployment benefits. While Ohio only allows you to earn 20 percent of your regular benefit amount before a reduction takes place, Illinois lets you earn 50 percent of your normal benefit check without any deductions.

Every state's formula is slightly different, but typically, the state reduces your benefit in proportion to how much your income exceeds the exemption. Failing to report income earned while on unemployment is against the law. Employers generally inform states when they hire someone, so the state unemployment agency will eventually learn that you earned money while collecting benefits.

Unemployment: The Concise Encyclopedia of Economics | Library of Economics and Liberty

Many states also encourage people to report unemployment fraud, so it is very possible that a neighbor or someone you know may report your working "off the books" for someone else. The consequences for unemployment fraud can be severe and include having to pay back the money, ineligibility for unemployment benefits for a period of time and, in some cases, criminal charges.

Lainie Petersen writes about business, real estate and personal finance, drawing on 25 years experience in publishing and education.

Petersen's work appears in Money Crashers, Selling to the Masses, and in Walmart News Now, a blog for Walmart suppliers. She holds a master's degree in library science from Dominican University. Skip to main content.

Nine Realistic Ways to Make Money While Unemployed - Engineer Your Finances

Working While on Unemployment Working while on unemployment is a way to supplement your unemployment income, network, improve your job skills and possibly even get hired for full-time work.

Reporting Earnings Unemployment agencies require you to report your earnings when you certify for your benefits. Benefit Reduction Your state has a formula for reducing your benefit income when you earn wages though in some states, a significant amount of money may be exempt from counting against your unemployment benefits. Warning Failing to report income earned while on unemployment is against the law.

How Much Will You Get -- and For How Long?

Alaska Department of Labor and Workforce Development: Unemployment Insurance Claimant Handbook Wisconsin Department of Workforce Development: Filing a Weekly Claim Certification Washington State Employment Security Department: Frequently Asked Questions About Unemployment Benefits Ohio Department of Job and Family Services: Maintaining Eligibility for Unemployment Compensation Benefits Arizona Department of Economic Security: Unemployment Insurance UI Weekly Claims Reporting Wages Illinois Department of Employment Security: Unemployment Insurance Benefits Handbook Connecticut Department of Labor: Filing an Unemployment Claim New York State Department of Labor: Unemployment Insurance Benefits Fraud.

About the Author Lainie Petersen writes about business, real estate and personal finance, drawing on 25 years experience in publishing and education. Suggest an Article Correction. More Articles [File] Can I File for Unemployment for Being Laid Off From a Second Job? Also Viewed [Benefits] What Are the Benefits of Being a Employee?

Logo Return to Top. Contact Customer Service Newsroom Contacts. Connect Email Newsletter Facebook Twitter Pinterest Google Instagram. Subscribe iPad app HoustonChronicle.