There is a government sponsored programme in NY called "smoke signals" ( The one with Erik Estrada in the ads on the subway) which provides basic and low cost phone service to anyone that requires it. No Credit check, no migra, nothing. I would strongly suggest that you give them a try.

Secondly, and I do not mean this in a critical way. There is plenty of work to be had in NYC right now. I have a lot of friends that have been in your situation this year and they all manage to keep their heads above water by doing a plethora of jobs. (although as a disclaimer, I do not suggest that you do the following)Your "tax" argument was not realistic as there are tonnes of jobs that you could get where you really would not have to worry about the unemployment people finding out about your earnings.

As for your concern about taking a "menial" job, I understand that. The truth is that when the new employer asks you what you did the last six months, you do not have to tell them, just continue saying whatever you have been saying so far. Remember you are the only one who knows.