Does collecting unemployment affect your social security benefits in California?

This is such a relief to hear. My neighbor was so confident about it I actually believed him. So the UI payments I receive from California EDD just don't factor into the SSA calculation at all?

Correct, they don't factor in at all. The SSA only looks at wages earned from employment or self-employment income. Unemployment benefits, disability payments, pension income - none of those count toward your Social Security earnings record. You're good to go.

confirmed this is right. i looked it up when i was in a similar situation last year. edd unemployment and social security are totally separate things

Wait so if I decided to take early Social Security at 63 AND collect EDD unemployment at the same time, neither would be reduced? That's actually really useful to know.

That's correct for California. Some people in your exact situation do exactly that - claim Social Security early and collect UI simultaneously. The tradeoff of course is that taking Social Security early permanently reduces your monthly benefit amount, but that's a separate retirement planning question unrelated to unemployment. California EDD doesn't offset UI benefits based on Social Security income.

i had NO idea you could even collect both at the same time. this thread is informative

I've literally never been able to get through when I call EDD. Does Claimyr actually work? I might try it just to confirm all this info directly.

It worked for me when nothing else did. I'd spent weeks calling and getting disconnected. Check out the demo video first at https://youtu.be/JmuwXR7HA10 so you understand what it does, then try claimyr.com if you want that direct confirmation from EDD.

ugh the EDD phone system is a nightmare. might look into this

Valid question! Yes, unemployment benefits ARE taxable income for federal and state tax purposes. But taxable income and Social Security earnings are different things. The SSA only counts wages and self-employment income toward your benefit calculation - what they call 'covered earnings.' Unemployment compensation is taxable but it is NOT covered earnings for SSA purposes. So it shows up on your tax return but not your Social Security earnings record.

ok that actually makes sense now. taxes and social security calculations are different buckets. thanks for explaining that

This is the confusion I had too. Glad someone asked because I was wondering the same thing honestly

That framing actually helps me understand it better. So worst case scenario my SS calculation just uses a different set of 35 years if this year is low. Nothing gets taken away from what I already earned.

Exactly right. If you have fewer than 35 years of earnings already, a zero year can drag your average down slightly - but that would be true whether you collected unemployment or not. The unemployment benefit itself causes zero harm to your record.

HR perspective is really helpful here. thanks for chiming in

YES this is exactly what I needed. I couldn't find a clear answer anywhere on the EDD website and the SSA website wasn't much better.

The EDD website is terrible for nuanced questions. It tells you how to file but doesn't answer the real questions people have. Frustrating.

agreed the website needs serious work. had to find answers in forums like this one

I was actually wondering about this too. So my benefit amount is calculated purely on my earnings history at the warehouse and my age plays no role?

Correct. The base period earnings determine your weekly benefit amount. Age, reason for separation, and other factors don't change the calculation. California EDD is fairly straightforward on that.

good to know for when i'm eventually in this situation

Has anyone else here tried Claimyr? Thinking about it for a different issue I'm having with my claim.

I tried it a few months back for an adjudication issue and it worked. Actually got through to a live EDD person which never happened when I called myself.

I'm going to try it. Even with all the helpful answers here I want to confirm my specific situation with an actual EDD agent before I make any Social Security timing decisions.

Not off topic at all for older workers. Short answer: UI benefits don't directly affect Medicare eligibility (still starts at 65) but they DO count as income for IRMAA calculations if your income is high enough, which could affect Medicare Part B premiums two years later. However at standard UI benefit amounts most people won't hit those thresholds. Worth verifying with a benefits counselor if you're close to Medicare age.

thank you! that's exactly what I was worried about. sounds like probably fine but worth double checking.

Didn't know about the IRMAA thing. Good to know.

This is super reassuring. An actual lived experience confirming the same thing. Thank you for sharing.

happy to help. i stressed about the exact same thing and it was all fine. also the SSA website lets you create an account and see your earnings record anytime if you want to monitor it yourself

Great point about the my Social Security account. OP you can create one at ssa.gov and see your full earnings history. It will confirm that UI benefits don't appear there.

Part time wages while collecting UI are actual earned income, so yes they DO count toward your Social Security earnings record - positively! You report them to EDD and they may reduce your weekly UI benefit depending on how much you earn, but those wages show up on your SS record as real contributions. It's actually a good thing from a retirement planning perspective.

oh interesting so working part time during unemployment is kind of a double benefit for people close to retirement

Exactly right. You're adding to your SS record while still receiving partial UI benefits. Just make sure to report all earnings accurately to California EDD when you file your weekly claim.

Yes, this one IS different. California EDD can offset your UI weekly benefit if you receive a pension from a base period employer. If your former employer contributes to the pension and it's from the same employer you're claiming UI against, EDD will typically reduce your weekly benefit by the weekly pension amount. This is separate from Social Security though - Social Security retirement benefits do NOT cause an EDD offset in California.

oh wow that's actually important. So pension from same employer = EDD reduction. But social security = no EDD reduction. got it.

This catches people off guard all the time. Good info to know before you file.

Having a direct SSA confirmation is the best possible source. Thank you for sharing that.

Yeah I was skeptical too but she was clear and patient about it. SSA reps are actually pretty reachable if you call them - much easier than EDD in my experience.

lol yeah SSA hold times are nothing compared to EDD hold times

This is actually a really smart way to think about it. Using UI to delay SS claiming to get a higher eventual monthly benefit. That reframes the whole thing for me.

Exactly. Each year you delay past 62 significantly increases your eventual benefit. If UI helps you financially survive until 65 or 67 without touching SS, that's a major long term win.

This is solid retirement planning advice. For anyone in this situation definitely worth running the numbers on SS claiming age vs UI period length.

Good to know it worked for you too! I'm going to try it for my own questions.

Three people in this thread have confirmed Claimyr works. Might finally try it for my adjudication issue.

ok adding this to my list of things to try. thanks

Yes, SSI (Supplemental Security Income) is very different from Social Security retirement. SSI IS needs-based and unemployment benefits DO count as unearned income that could reduce or affect SSI payments. Your mom should definitely check with the SSA about her specific SSI situation before filing UI. The interaction between UI and SSI is more complicated than the UI/SS retirement situation discussed in this thread.

oh no. ok that's really important. thank you for flagging this, I'll make sure she talks to SSA first.

To be clear for anyone reading this thread: SSI and Social Security retirement are very different programs. What we've been discussing - regular Social Security retirement benefits based on work history - is NOT affected by UI. SSI which is the income-based program for low-income individuals IS potentially affected. Please make sure you know which program you're asking about.

Agreed. I'm going to start my weekly claim filings without any more hesitation after reading everything here. Really grateful for this community.

glad it helped. real people sharing real experiences is way more useful than official FAQ pages that never answer the actual question

Same. Saved this thread. Will probably send it to my brother who is in a similar age and job situation.

This is super practical. I was going to just wing those questions but now I know what to actually look out for. Thank you.

EDD overpayment notices are a nightmare to deal with, so accurate weekly certifications are really important. When in doubt, call and ask before you certify rather than after.

Solid advice. The overpayment process is genuinely difficult to resolve. Better to be accurate upfront even if it means a slightly reduced weekly benefit.