EDD reporting question - do settlement funds from accident count as income?

yes u have to report ANY money u get while on ui. thats what the question means when it asks if u received any other income. doesnt matter where it comes from

Actually, this is a common misconception. The EDD certification asks specifically about income from work, self-employment, or certain specific types of payments. Insurance settlements for personal injury or property damage are generally NOT considered income for unemployment purposes. They're asking if you earned money from working, not if you received money from other sources like insurance claims. However, I'd recommend calling EDD directly to get clarification for your specific situation, as settlement structures can vary. Some portions might be classified differently (like if part of it is for lost wages).

I went through the EXACT same situation last year!!! My settlement was for $12,000 after a slip and fall. I called EDD like 6 TIMES and could never get through to anyone!!! It was SO FRUSTRATING. I ended up just not reporting it because most of it went to medical bills anyway and technically it wasn't "income" from working. Nothing happened, no penalties or anything. But I was stressed about it for months thinking they would come after me!!

When I was on EDD last month, I had the same worry about some money I got from selling my old car! I think what matters is if the money is like replacing wages or if it's just compensation for something else. So like, part of your settlement might be for lost wages which probably counts, but the part for your medical bills and pain and suffering probably doesn't? Idk tho, the EDD rules are so confusing!

Settlement money typically breaks down into different categories. You need to look at your settlement documents to see if any portion is specifically designated as "lost wages" or "lost income" - that part would need to be reported. The portions for medical expenses, pain and suffering, or property damage generally wouldn't count as income for EDD purposes. The best approach is to call EDD directly for clarification. I know it's nearly impossible to get through to them on the phone these days, but you should try using Claimyr to connect with an EDD representative. I used their service last month when I had a similar unusual income question - they connected me to an EDD rep in about 15 minutes when I had been trying for days on my own. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km

This happened to my brother and he called EDD (somehow got through eventually) and they told him that accident settlements don't need to be reported unless specifically for lost wages

The EDD certification asks about specific types of income that can affect your benefits. For UI claims in 2025, these include: 1. Work income (W-2 employment) 2. Self-employment earnings 3. Pension payments 4. Residual payments from entertainment work 5. Jury duty pay 6. Paid family leave 7. Workers' compensation 8. State disability insurance Notably absent is money from insurance settlements for accidents/personal injury. The key distinction is that UI is replacing lost WAGES, and they're interested in other sources of WAGE replacement, not just any money you might receive. Your settlement likely includes compensation for: - Medical expenses (not income) - Property damage (not income) - Pain and suffering (not income) - Possibly lost wages (this part WOULD be reportable) If your settlement documents don't specifically carve out a portion for lost wages, then generally the settlement wouldn't be reportable income for UI purposes. However, getting official confirmation from EDD is always the safest approach.

I tried the Claimyr thing someone mentioned above today after seeing this thread and it actually worked! Got through to a rep in about 20 mins when I'd been trying for days. Just sharing in case anyone else needs to actually talk to a human at EDD.

OP, did you ever get an official answer from EDD? I'm curious what they said since this question comes up frequently.

Thanks for updating us with the official answer from EDD! This is really helpful for future reference. It's good to know they confirmed that settlements for medical expenses and property damage don't need to be reported - only portions specifically designated as lost wages would count. This thread will be useful for others who find themselves in similar situations. Glad you were able to get through to them and get peace of mind!

This is such valuable information for anyone dealing with settlement money while on UI! I went through something similar last year with a slip and fall settlement and was terrified I'd mess up my benefits. Like others mentioned, the key is really understanding what your settlement is compensating for. In my case, it was purely for medical bills and pain/suffering, so no reporting needed. But I definitely understand the anxiety - the EDD rules can be so unclear and the consequences for getting it wrong are scary. It's great that you were able to get through to an actual EDD rep for confirmation. For anyone else in this situation, definitely look at your settlement documents first to see if any portion is specifically labeled as lost wages or income replacement before panicking!

This thread has been incredibly informative! I'm currently dealing with a potential settlement from a workplace injury (not workers comp since it was a third-party liability issue) and was really worried about how it might affect my UI benefits. Reading through everyone's experiences and seeing the official confirmation from EDD really helps clarify things. It sounds like the key is whether any portion of the settlement is specifically designated as compensation for lost wages versus medical expenses, pain and suffering, or property damage. I'll definitely review my settlement documents carefully when they arrive and consider using that Claimyr service if I need to speak with an EDD rep directly. Thanks to everyone who shared their knowledge and experiences here - this kind of peer support is invaluable when dealing with these confusing situations!

I'm new to the community but this thread has been incredibly helpful! I'm currently on UI and just received a small settlement from a minor car accident - nothing major, just some bumps and bruises plus car repairs. Reading through everyone's experiences here, especially Yuki's follow-up with the official EDD response, really clarifies things. It seems like the bottom line is that settlements are only reportable if they specifically include compensation for lost wages. Everything else (medical, property damage, pain/suffering) doesn't count as income for UI purposes. This kind of peer knowledge sharing is so valuable - the EDD website and phone system can be so confusing to navigate on your own. Thanks to everyone who contributed their experiences and made this such a comprehensive resource!