Unemployment small business income question

[Johnny2X2X]

My wife owns a small business, she's been shutdown for much of the Spring, but is starting to have some jobs, however, he business is still operating at a loss. He bills are greater than her revenues right now, so she is collecting Unemployment. She is very small, right now she's doing jobs just to be able to pay her business's bills, so she has no income, in fact she has a negative income right now.

As far as claiming unemployment, she doesn't have to claim any income right now, is that correct? Even though she has some revenue coming in that goes right back out to pay her business's expenses, I do not view this as income at all. We keep a rough tally of revenues and expenses, but don't do her books completely until our accountant asks us for an income statement before tax time next year, the income statement will surely be a negative number this year.

Safe to keep collecting UE or should we disclose some income for her?

[Johnny2X2X]

1. Found my answer I think

UE for small business owners goes by Net Income, so if she's operating at a loss right now because of Covid-19, she can collect Unemployment. She's basically just keeping things afloat right now so she'll have customers to return to next year, so it's appropriate for her to not claim an income (which we can prove she has no income). When she does he schedule C income statement for next years taxes it will show a negative number for her business.