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Tax Law (Questions About Taxes)/Unemployment and Foreign Income


Dear Mr Tidwell,

Here's my brief background:
- I came to United States from India as a student in 2002.
- I graduated in Dec 2009 and started working full time in Jan 2010.
- I got my Green Card in March 2013.
- I got laid off in Dec 2013.
- I applied for Unemployment Benefits in Texas in January 2014 and have been getting my unemployment benefits since then.

Before I came to US in 2002, my father made me a partner in his company in India and he has been filing income tax on my behalf since. My father's business is limited to India and he has no business ventures in the United States.

It just struck me that would my unemployment insurance in Texas be in jeopardy since I am a partner in a business in India? I don't receive any wages/profit from my father's business and haven't received any cash gifts from him, in the year 2014, since my unemployment benefits started.

Please advice what should I do. Many thanks!

Mr. Ashish:

During the years since 2002 thru 2013 did you receive payments from your fathers company?  If so was the payments as a draw once or twice a year or as a weekly draw that an "officer" of a corporation would receive.

If its like return on investment then its not reportable if its like a salary it is reportable.  But, if you are not performing any work over here for the company in India then it would not be wages anyway.  Its all murky but you should look at it this way.


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John L. Tidwell


Unemployment tax law both state and federal; determination of employer employee relationship; the usual 20 commonlaw factors for making that determination; and what makes me a liable employer.


Over 20 years of field audit experience with a state agency



Degree in Accounting from Falls Business College

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