EDD asking for 1099 income when filing new claim after W-2 job ended - how to report?
Hey everyone, I'm totally confused about this EDD application process. So I just got laid off from my regular W-2 job last month (worked there for about 8 months). But I also do some freelance design work on the side that I get 1099s for. When I'm filling out the new UI claim online, it's asking for my income history, and I'm not sure how to handle the 1099 stuff since I only get those forms once a year and the amounts vary month to month. Do I need to report this 1099 income? And if so, how do I break it down since it's not like regular paychecks? The EDD application seems really designed for W-2 employees only. Has anyone dealt with mixed income sources when applying for unemployment? Thanks in advance!
17 comments
Javier Gomez
yes u have to report ALL income even the 1099 stuff. they will cross-check with IRS anyways. When i filed last yr they wanted me to enter each 'job' seperately. put your W2 first then do another entry for the freelance/1099 work. for the dates just put Jan 1-Dec 31 for the whole year of 1099 work.
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NebulaNinja
•Thanks! When I put in the 1099 income, do I need to break it down by month or quarters or something? I don't get paid the same amount each time I do freelance work.
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Emma Wilson
You absolutely need to report your 1099 income. Here's how to handle it properly: 1. First enter your W-2 job details with the correct start and end dates 2. For your 1099 income, add it as a separate employer - you can put "Self-employed" or your business name 3. When it asks for the dates, use the entire period you've been doing freelance work 4. For income reporting, take your total 1099 income for the year and divide by 12 to get a monthly average if the system requires monthly amounts 5. Make sure to indicate this is self-employment income when prompted This matters because EDD uses your highest-earning quarter to calculate your benefit amount, and all income sources count toward this calculation. Also, once you're collecting benefits, you'll need to report any freelance earnings during your bi-weekly certifications, which will reduce your weekly benefit amount accordingly.
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Malik Thomas
•wait a minute does this mean the freelance stuff gets u MORE unemployment money or LESS?? i thought sidegigs hurt ur claim???
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Emma Wilson
To answer the question about whether 1099 income helps or hurts your claim: 1. During the *base period* calculation (the 12-18 months before you filed), ALL income including 1099 work can increase your weekly benefit amount - so it HELPS your claim amount 2. But once you're collecting benefits, any current 1099/freelance earnings must be reported during certification and will reduce your weekly payments - so ongoing freelance work while collecting REDUCES what you receive each week It's a bit confusing, but essentially: past 1099 work = good for your claim amount, current 1099 work = reduces your weekly payment
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NebulaNinja
•That makes more sense now! So basically my past 1099 work will actually help me qualify for a higher weekly benefit amount. But once I start collecting, I need to report any new freelance income I earn. Will they ask for proof of my 1099 income from previous years? I have tax returns but wasn't sure if I need to upload those somewhere.
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Isabella Oliveira
I just went through this EXACT same situation last month! The way I handled it was getting my last year's tax return (Schedule C) and dividing my total 1099 income by 4 to get quarterly amounts. That's what I put in the system when it asked. BUT - and this is important - I got stuck in pending for almost 3 weeks because they needed to verify my self-employment income. I couldn't get through to EDD no matter how many times I called - always got the "we're experiencing high call volume" message and then it hung up on me. I finally used Claimyr (claimyr.com) to get through to an EDD rep after wasting days trying on my own. They have this system that connects you with EDD when a line opens up. There's a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The EDD rep told me they needed my Schedule C from my tax return to verify my 1099 income. Once I uploaded that in the portal, my claim was approved within 2 days.
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Javier Gomez
•What if you had a 1099 but didn't file a Schedule C for some reason? asking for a friend lol
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Ravi Kapoor
The 1099 income question is SOOOO annoying!!!! I went through this last yr and EDD messed up my claim 3 TIMES!!!! First they didn't count my 1099 income at all, then they counted it wrong, then they said I didn't provide proof when I DID!!! The whole system is broken and they have NO IDEA how to handle ppl who aren't just simple W-2 employees. I spent TWO MONTHS fighting with them to fix it. Good luck!!
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NebulaNinja
•Oh no, that sounds like a nightmare! Did you eventually get it resolved? I really need this UI to come through while I'm looking for another full-time job.
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Ravi Kapoor
Yeah I finally got it fixed but only after talking to 4 different reps who all told me different things! MAKE SURE you keep copies of EVERYTHING you send them. I take screenshots of every page I submit now bc they "lost" my docs twice. And write down the names of anyone you talk to!!
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Freya Larsen
To give you a more complete answer about your 1099 income reporting: 1. You should report the total income from each quarter of your base period (this is typically the first 4 of the last 5 completed calendar quarters before you file) 2. You can determine quarterly amounts by: - Using your bookkeeping records if you track income by date received - Looking at bank statements to see when payments were deposited - If you truly have no way to break it down, divide your annual amount by 4 (but be prepared to explain this if questioned) 3. Documentation you should have ready: - Previous year's tax return with Schedule C and 1099 forms - Any bookkeeping records showing income by quarter - Bank statements showing deposits from clients 4. For ongoing freelance work while on unemployment: - Report gross earnings in the week you performed the work (not when paid) - Keep detailed records of hours worked and amounts earned each day - Understand that earnings over $25 reduce your weekly benefit amount This mixed income situation often triggers a phone interview with EDD to verify everything, so having your documentation organized in advance will help tremendously.
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GalacticGladiator
•Yes! The phone interview thing happend to me. It was like 3 weeks after I applied. Just be honest. If your not sure, tell them that!
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NebulaNinja
Thank you all for the helpful advice! I'm going to dig up my tax returns and try to figure out the quarterly breakdown as best I can. It sounds like I should expect some delays and possibly a phone interview about the mixed income. I'll make sure to keep detailed records of everything I submit. Fingers crossed this all goes smoothly!
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Isabella Oliveira
•Good luck! And seriously, if you get stuck in pending and can't get through to EDD, check out that Claimyr service I mentioned. Saved me a ton of frustration and probably weeks of waiting. Keep us posted on how it goes!
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Malik Thomas
wait i'm confused about something... if you're still doing 1099 work now, doesn't that mean you're not actually unemployed?? my friend got denied because they said he was still "self employed" even tho he lost his main job
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Emma Wilson
•That's a great question. It depends on how substantial the 1099 work is. If your friend's self-employment was their primary income source or took up significant time (20+ hours/week), EDD might consider them still employed. However, if the 1099 work is minimal/occasional and the main job loss was their primary source of income, they can still qualify for partial benefits. The key is being truthful about ongoing work during the weekly certification. This is called partial unemployment and is perfectly legitimate as long as you report all earnings.
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