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okinawese17
New Member

How can I pay back my UI overpayment & not get penalized on my taxes? I got UI $ Jan/Feb then got job in March. I still got $7k in non-taxed UI $ & cant reach EDD.

I didn't certify my weekly unemployment certification because I was told pre-pandemic that was the best thing to do to no longer receive UI benefits. Unfortunately, I was then automatically sent payments that I did not want. I have not been able to get in touch with anyone at EDD, and I do not trust sending a check to the overpayment mailing address because the department seems to be poorly run. I don't want to be penalized for the government's ineptitude.
3 Replies
JoannaB2
Expert Alumni

How can I pay back my UI overpayment & not get penalized on my taxes? I got UI $ Jan/Feb then got job in March. I still got $7k in non-taxed UI $ & cant reach EDD.

Yes,  During the pandemic months (April - July 2020), unemployment benefits were sent automatically to qualified individuals  If you received overpayment, you may contact your local EDD and ask how to return the benefits

jean_boots
New Member

How can I pay back my UI overpayment & not get penalized on my taxes? I got UI $ Jan/Feb then got job in March. I still got $7k in non-taxed UI $ & cant reach EDD.

I am also having this issue and cannot get a hold of anybody in the California EDD.  I would like to do my taxes for 2020, but do not want to pay over $500 in federal taxes I am not going to get back and my  Adjusted Gross becomes higher for stimulus payments.  What can  you do?  I have been told you can submit form 8275 to explain, but I am confused.

 

KathrynG3
Expert Alumni

How can I pay back my UI overpayment & not get penalized on my taxes? I got UI $ Jan/Feb then got job in March. I still got $7k in non-taxed UI $ & cant reach EDD.

If you received an overpayment and it was not returned, it would be taxable at the federal level. To avoid having California reduce your federal refund, the overpayment should be paid in full. Allow four weeks for your offset to be applied.

 

The California Unemployment Insurance overpayment can be returned online, which would avoid mailing a payment to the overpayment address. The Benefits Programs Online can also be accessed to view balances & payments and/or set up an installment agreement.

 

For more information, see California Employment Development Department FAQs - Benefit Overpayments

 

Click the link for more details about federal IRS Form 8275, Disclosure Statement, which is used to disclose a position taken contrary to a regulation. This would not excuse you from complying with the California rules. It is used to avoid accuracy related federal penalties, but would not avoid federal income taxes for the additional income. 

 

@okinawese17

@jean_boots

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