EDD denied my claim after reporting 1099 contract work - how do I qualify?
I'm so confused and frustrated with EDD right now! I was laid off from my full-time job at a marketing agency in January 2025 and filed for unemployment. I also did some freelance graphic design work last year and reported that income on my 1099. When I filed my claim, I honestly reported both incomes. Yesterday I got a notice saying I'm DENIED because I'm 'self-employed' even though my main income was W-2! The determination says something about my base period and insufficient wages as an employee. I only made about $9,400 from freelancing compared to $57,000 from my regular job. How can they deny me when most of my income was from regular employment? Has anyone else dealt with this mixed income situation? What am I supposed to do now?
22 comments
Anastasia Fedorov
This is actually a common misunderstanding. EDD separates W-2 and 1099 income when calculating your benefit eligibility. What likely happened is that the claims processor incorrectly categorized your primary income. You need to file an appeal ASAP - you only have 30 days from the date on your determination notice. On the appeal form, clearly explain the breakdown of your income sources and attach copies of your W-2 and any paystubs you have from your regular employment. Make sure to emphasize that your primary work was as an employee, not self-employed.
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Diego Vargas
•Thank you so much! Do I need to use any special form for the appeal or just write a letter? And should I keep certifying even though they denied me?
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StarStrider
omg this EXACT thing happen to me last month!! i had a PT job at starbucks but also did doordash. EDD said i was self employed and denied me even tho starbucks was my main job. took me forever to get it fixed bc i kept calling and nobody answered!!!! edd system is completley broken
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Diego Vargas
•That's exactly what's happening to me! Did you end up getting approved? How did you finally get through to someone?
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StarStrider
•yeah i finally got approved after like 3 weeks. had to call like 50 times before getting thru. they fixed it after i explained everything but it was SO stressful
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Sean Doyle
You definitely need to appeal this determination. This is a known issue with mixed income claims. Here's exactly what to do: 1. File your appeal using the DE 1000M form (Appeal Form) within 30 days 2. Continue certifying for benefits each week even while appeal is pending 3. Include copies of your W-2 and earning statements from your marketing job 4. Clearly state that your primary employment was W-2 based and the 1099 work was supplemental 5. Request a phone hearing rather than in-person if possible I went through something similar and successfully overturned the determination. The key is to be very explicit about your employment status and keep all documentation organized.
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Diego Vargas
•Thank you for the detailed instructions! I'll look for that DE 1000M form right now and start working on my appeal. Should I also include bank statements showing deposits from my employer?
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Sean Doyle
•Yes, including bank statements showing regular deposits from your W-2 employer would be helpful additional evidence. Just make sure to redact any sensitive account information. Also, if you have any email correspondence with your former employer about your layoff, that would strengthen your case too. The more documentation you have showing you were primarily a W-2 employee, the better.
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Zara Rashid
HAHAHA welcome to the wonderful world of EDD where NOTHING makes sense!!! I worked at a company for 3 YEARS then did Uber for 2 months after being laid off while looking for work. Guess what? They classified me as 'self employed' too!! THE WHOLE SYSTEM IS RIGGED to deny benefits any way they can. You'll spend WEEKS trying to get this fixed...
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Luca Romano
•This is unhelpful and not entirely accurate. While EDD does make mistakes, they do have a process to correct them. The appeal system actually works if you provide proper documentation. I've helped several people navigate this exact scenario successfully.
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Zara Rashid
•OK maybe I'm being too harsh but seriously - why should someone have to APPEAL something that should have been correct in the first place? The system IS broken when it consistently misclassifies people. Just saying.
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Nia Jackson
After trying to call EDD more than 20 times without getting through about a similar mixed income issue, I found this service called Claimyr that got me connected to an EDD rep in less than 30 minutes. It saved me days of frustration. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. The rep I spoke with immediately saw the error with my claim and fixed the income classification issue while I was on the phone. You can check them out at claimyr.com - honestly worth it for something this important.
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Diego Vargas
•Thank you for sharing this! I've been trying to call all morning and keep getting the "we're experiencing high call volume" message. I'll check out that video. Did they explain why the mistake happened in the first place?
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Nia Jackson
•Yes, the rep explained that their system sometimes incorrectly flags claims with any 1099 income for additional review, and if the reviewer doesn't carefully check the income percentages, they can make a quick determination that you're primarily self-employed. It's basically a processing error that happens pretty frequently with mixed income claims. The phone rep was able to see both income sources and correct the classification.
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Mateo Hernandez
ok im not an expert but i think i no whats happening... the "base period" is the thing that matters. if ur marketing job didnt have enough hours in the specific quarters they look at, they might be ignoring that income. my friend had something like this happen 2 him. u should check which quarters they're using for ur base period calculation
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Anastasia Fedorov
•This is a good point. EDD looks at a specific 12-month period divided into quarters (usually not the most recent quarters). If your W-2 employment wasn't consistent throughout that base period, it could affect your eligibility. However, with $57,000 in W-2 wages, assuming it was spread across multiple quarters, you should still qualify. The appeal should clarify this.
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Sean Doyle
One more thing I forgot to mention - make sure you specifically request a "reconsideration" in addition to filing an appeal. Sometimes EDD can fix these classification errors through reconsideration, which is faster than waiting for an appeal hearing. You can do this by calling and speaking to a representative, or by sending a message through your UI Online account specifically asking them to reconsider the determination based on the evidence of your primary W-2 employment.
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Diego Vargas
•I've been trying to call for two days with no luck. I'll try the UI Online message option. Should I use specific wording when requesting the reconsideration?
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StarStrider
has anyone else noticed EDD is being SUPER strict this year? my friend got denied for something similar last month and she said the EDD person told her they're being more careful bc of all the fraud from COVID times. maybe thats why they're being weird about mixed income now??
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Luca Romano
•There is some truth to this. After the pandemic fraud issues, EDD implemented stricter verification protocols. However, they shouldn't be denying legitimate claims because of it. Mixed income situations have always required more documentation, but the fundamental eligibility rules haven't changed. With proper evidence, these determinations get reversed.
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Anastasia Fedorov
Just to follow up on what others have said - once you file your appeal, be prepared to wait. The appeal process can take 3-6 weeks before you get a hearing date. Keep certifying for benefits every week while waiting so that if you win your appeal, you'll get backpay for all certified weeks. Also, you might want to prepare a folder with all your documentation now (employment contract, termination notice, all pay stubs, W-2, correspondence with employer, etc) so you have everything ready when your hearing date is scheduled.
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Diego Vargas
•Thank you for this advice. I'm going to start collecting all my documentation tonight. This whole situation is so stressful when you're trying to pay bills. I appreciate everyone's help!
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