Can I collect EDD benefits with W-2 income while running a non-earning self-employment business?

ur overthinking it. just report the W2 income when u certify and dont worry abt the biz stuff if its not making $$$. thats what i did last yr with my etsy shop, no problems

This is actually a really important question that confuses a lot of people. According to EDD guidelines, you ARE required to report self-employment activity during certification, even if you're not earning income from it yet. The key factor is whether you're "available for work" - if you're spending significant time on your business (like 20+ hours/week), EDD may consider you unavailable for full-time work and thus ineligible. When you certify, you need to answer "yes" to the question about whether you worked or earned money, and then report your business activity with $0 income. You should also report any W-2 earnings accurately. I've seen cases where people didn't report self-employment and later faced overpayment notices and even fraud penalties when EDD discovered the business through tax filings.

I was in almost the exact same situation last year!!! Started a photography business but still working random shifts at my old restaurant job. The EDD interviewer told me I needed to report BOTH, and they calculated my benefits based on my reduced income. As long as you're available for full-time work and actively looking for jobs, you can still get partial benefits. Just be 100% honest on your certification forms!!!

The previous responses are mostly correct, but let me clarify a few important points: 1. Self-employment MUST be reported during certification, regardless of income 2. You need to report hours spent on your business each week 3. If these hours make you unavailable for full-time work, benefits may be reduced or denied 4. Your benefit amount will be reduced by any W-2 earnings according to the EDD partial benefits formula The biggest risk is not being upfront about your business activities. EDD can crosscheck with your tax filings, business registrations, and other records. If they determine you weren't truthful, you could face penalties and have to repay benefits. I recommend calling EDD directly to explain your specific situation before filing. That way, you'll have documentation that you sought clarification.

I had the exact same issue trying to reach someone at EDD about my self-employment! Spent days getting hung up on after waiting for hours. Finally I used Claimyr.com and got through to an EDD rep in about 20 minutes. They have a service that basically navigates the phone system for you and calls you when an agent is on the line. Saved me so much frustration! They even have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The agent I spoke with said I needed to report my business activities on my certification even with $0 income, and that I could still receive partial benefits based on my reduced W-2 work as long as I met the work search requirements.

The EDD DGAF about your business if it ain't making money yet. Just report your W2 stuff and you'll be fine. My cousin's been doing this for months with his "consulting business" that hasn't had a single client yet lmao

wait did anyone mention work search requirements? u gotta do those even with partial benefits. make sure ur doing the required job contacts each week or theyll cut u off

After reviewing the responses here, let me summarize the correct approach for your situation: 1. Yes, you can potentially receive unemployment benefits while working sporadically at W-2 jobs and developing your non-income producing business 2. You MUST report both your W-2 work and self-employment activities during certification 3. Report the hours spent on your business even with $0 income 4. Your benefits will be reduced by any W-2 earnings according to the partial benefits formula 5. You must remain available for full-time work and complete required work search activities 6. Getting official clarification from EDD is the safest approach to avoid future issues Many people have successfully navigated this situation, but the key is complete transparency with EDD. Good luck!