Do I have to report 1099 income when certifying for EDD benefits?

Yes, you absolutely must report ALL income when certifying, including 1099 work. EDD doesn't care whether taxes were withheld or not - they only care about gross earnings during the certification period. Report the full amount before taxes on the day you earned it (not when you got paid). If you don't report it and they find out later through tax records matching, you could face penalties for willful misrepresentation.

Just adding to what was already said - make sure you report it for the week you WORKED, not when you got paid. I made that mistake last year and it caused all kinds of problems. You'll need to calculate your gross earnings before any deductions. Your weekly benefit will be reduced according to their formula, but you might still get partial benefits depending on how much you earned compared to your weekly benefit amount.

EVERYBODY LISTEN UP! The EDD system is DESIGNED to trip you up on this exact issue! They make it confusing on purpose! You MUST report ANY income earned during your certification period regardless of tax status or they WILL hit you with an overpayment notice down the road. They cross-check with tax records and WILL catch this. I learned the hard way and had to pay back $3800 plus a 30% penalty because they claimed I intentionally misreported!!!

When I had this same situation, I couldn't get a straight answer from the EDD website so I tried calling. Took me THREE DAYS of constant redialing to finally reach someone! So frustrating. When I finally got through, they confirmed what others are saying - you must report ALL income regardless of type. If you're having trouble getting through to EDD to ask questions like this, I recently discovered a service called Claimyr that helped me get through to an EDD rep in under 30 minutes. You can see how it works here: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km and their website is claimyr.com - it was a lifesaver when I needed to ask about my mixed W2/1099 income situation.

lol i did the same thing last yr & didnt report a small 1099 job cuz i thought it didnt count. big mistake!!! ended up with a notice saying i committed fraud & had to pay everything back plus penalties. dont be like me just report everything its not worth the headache

wait im confused, i thought if your self employed you cant get unemployment at all?? isnt that why they had the pua thing during covid?

Thanks everyone for the clear answers! I'm definitely going to report the 1099 income when I certify this weekend. I'll make sure to report it for the actual week I worked, not when I got paid. Better to get slightly reduced benefits than risk penalties later. Really appreciate all the advice!

One more thing to keep in mind - since this is 1099 income, you might be able to deduct business expenses when you file your taxes, but for EDD reporting purposes you still have to report the full gross amount. So if you had any expenses related to that gig, keep track of them for tax time, but they won't help with your UI reporting.

Just wanted to add that if you're worried about how the 1099 income will affect your benefit amount, EDD has a formula where they subtract $25 from your earnings and then reduce your weekly benefit by 75% of what's left. So if you earned $620, they'd subtract $25 (leaving $595), then reduce your benefit by 75% of that ($446.25). You might still get partial benefits depending on your weekly benefit amount. It's definitely better to report it and get reduced benefits than risk the fraud penalties everyone mentioned!

Just want to emphasize what others have said - definitely report it! I made the mistake of not reporting a small 1099 job thinking it wouldn't matter since it was only for a few days. EDD caught it during their annual cross-match with tax records and I got hit with an overpayment notice almost a year later. Had to pay back $1,200 plus a 15% penalty. The stress and paperwork nightmare wasn't worth trying to hide a few hundred dollars. Always better to be completely transparent with EDD - they have access to way more information than people realize!

I work in benefits administration and can confirm everything others have said - you MUST report all 1099 income during certification. The key thing to remember is EDD uses a "work performed" date, not payment date. So report it for the week you actually did the work. Also, since you mentioned this is a slow period in your industry, consider that reporting this income honestly now protects you if you get more 1099 work later. EDD tracks patterns, and if they see you've been consistently reporting all income types, it builds credibility in your file. But if they catch unreported income even once, they'll scrutinize all your future certifications much more closely. The good news is $620 won't completely wipe out your benefits - you'll likely still qualify for partial UI that week using their earnings deduction formula. Stay honest and you'll be fine!

I went through this exact situation a few months ago! Had a small 1099 gig while on UI and was terrified about reporting it. Like everyone else said, you absolutely have to report it - but here's what I learned that might help ease your mind: the partial benefit formula isn't as harsh as it sounds. With your $620 earnings, you'll likely still get some benefits that week rather than losing everything. What really helped me was keeping detailed records - I wrote down exactly which days I worked, what I earned each day, and when I got paid. This made certification much easier and gave me peace of mind that I was reporting everything correctly. Also, don't stress too much about the taxes on that income - you can set aside about 25-30% for taxes, but remember you might get some of that back depending on your overall tax situation for the year. The bottom line is EDD's cross-matching system is no joke - they WILL find unreported income eventually, and the penalties are way worse than just reporting it upfront and getting reduced benefits for one week. You're making the right choice by being honest!

I'm in a similar situation right now - got some freelance work while on UI and wasn't sure about the reporting rules. Reading through all these responses has been incredibly helpful! It's clear that EDD takes unreported income very seriously, and the penalties people have mentioned are definitely not worth the risk. I had no idea about the cross-matching with tax records or that they could catch unreported income up to a year later. That's honestly terrifying! One question I have - when you report 1099 income, do you need to provide any documentation during certification, or do you just enter the amount? I want to make sure I'm prepared when I certify next week. Thanks everyone for being so transparent about your experiences, both good and bad!

I was in almost the exact same situation last year! Had a regular W-2 job, got laid off, then picked up some freelance 1099 work while collecting UI. I was so confused about the reporting requirements too, especially since the EDD website isn't super clear about mixed income types. Everyone here is absolutely right - you MUST report that $620. I learned this the hard way when I didn't report a small $300 gig thinking it wouldn't matter. Got a letter from EDD about 6 months later asking me to explain the "discrepancy" they found in their records. Luckily I was able to provide documentation and they just had me repay the benefits for that week without penalties, but it was stressful! The key things I learned: 1) Report for the week you WORKED, not when you got paid, 2) Always report the gross amount before any deductions, and 3) Keep detailed records of everything. Also, don't panic about your benefit amount - with EDD's formula you'll likely still get partial benefits that week rather than losing everything. Better to be honest and get reduced benefits than risk those fraud penalties everyone's mentioning!

I'm currently dealing with a similar mixed income situation and this thread has been incredibly eye-opening! I had no idea about the annual cross-matching with tax records or that penalties could be as high as 30%. The consensus here is crystal clear - report everything, no matter how small. One thing I'm curious about - has anyone here actually gone through an EDD audit or income verification process? I'm wondering what that looks like and what kind of documentation they typically request. I want to make sure I'm keeping the right records just in case. Thanks to everyone who shared their experiences, both the success stories and the cautionary tales!

Just wanted to add my experience as someone who's dealt with mixed W-2/1099 income while on UI - definitely report that $620! I made the mistake early on of thinking 1099 work was treated differently since "it's not regular employment" but EDD sees ALL income the same way during certification. One tip that helped me: when you certify online, there's a section that asks about work performed during each day of the certification period. Make sure you mark the specific days you actually worked the gig, not just lump it all into one day. This helps EDD calculate your benefits more accurately and shows you're being thorough with your reporting. Also, keep a simple spreadsheet or notes on your phone tracking any freelance/contractor work you do while on UI - date worked, amount earned, and when you got paid. This saved me so much time during certifications and gave me peace of mind that I wasn't missing anything. The $620 will reduce your weekly benefit but you'll likely still qualify for partial payments, which is way better than risking those scary fraud penalties everyone's mentioned!