EDD reporting requirements for gig work - $600 threshold confusion

You MUST report ALL earnings to EDD when certifying, regardless of tax reporting requirements. The $600 threshold (actually $400 for self-employment) is about federal tax filing requirements, not unemployment reporting. Every dollar you earn from gig work needs to be reported when you certify for unemployment. EDD will then calculate your partial benefit amount based on your reported earnings. Don't confuse tax rules with certification requirements or you could end up with an overpayment notice later.

Oh shoot, thank you for clearing that up! I definitely don't want an overpayment situation. So even if I make like $50 in a day from deliveries, I need to report that? Does EDD count the amount before or after expenses like gas?

I went through this EXACT situation last year!!! The $600 thing you're talking about is probably the 1099-K threshold, which changed recently (used to be $600, now back to $20,000 for federal but CA still uses $600). That's just about whether the app company sends you a tax form. Has NOTHING to do with what you report to EDD. \n\nYou absolutely NEED to report every dollar you earn when certifying. EDD considers your GROSS earnings (before expenses, before app fees). If you don't report everything, they'll find out eventually through tax records matching and you'll have to pay it all back plus penalties. Don't risk it!!!

Thanks for sharing your experience! That makes sense about the 1099-K thing. So basically the apps might not send me tax forms for small amounts, but I still need to track and report everything to EDD. I'll definitely report all earnings, even if it means smaller UI payments.

quick question - are you reporting net or gross from the gig work? after gas and everything i barely break even some days

For EDD certification purposes, you must report your GROSS earnings (before any expenses). EDD does not allow you to deduct expenses from your reported income when certifying, even though you can deduct those expenses on your taxes. It's one of the unfortunate aspects of gig work while on unemployment.

Word of warning: I didn't report some of my DoorDash income last year thinking it wasn't enough to matter, and EDD hit me with a disqualification, overpayment notice AND a 30% penalty! Had to go through the whole appeal process which was a nightmare. They check eventually through tax records and employer reporting. Not worth the stress, just report everything and take the partial payment.

Wow, that sounds awful! Definitely not going to risk that. Did you have to pay back all your benefits or just the weeks you didn't report correctly?

I had to pay back just the weeks I underreported, but with the penalty added it was still brutal. The worst part was they stopped all my payments during the investigation. Took almost 3 months to resolve. Definitely don't recommend.

the 600$ thing is for taxes from the irs not for edd. u gotta report everything to edd but u might not need to file taxes on small amounts. its confusing i know

Not quite right. The $600 was a 1099-K reporting threshold, but self-employed people still need to report all income to IRS if they make over $400 in a year, even if they don't get a 1099. Tax reporting and EDD reporting are completely separate systems.

I've been trying to contact EDD for weeks about this exact situation with my Uber earnings and can't get through to anyone! Always get the \

Thanks for the tip about Claimyr. If I need to talk to a rep I'll check it out. Did they explain how they calculate the partial benefits with gig work? Like if I report $200 in DoorDash earnings, do they just subtract that from my weekly benefit amount?

Yes, they explained it's basically the first $25 (or 25% of your earnings, whichever is higher) doesn't count against you. Then the rest gets subtracted from your weekly benefit amount. So if your weekly benefit is $450 and you earn $200, they'd subtract $175 (ignoring the first $25), leaving you with a $275 payment plus your gig earnings - so $475 total for the week.

Don't listen to anyone telling you not to report income! I work part-time at Amazon while on partial unemployment and I report EVERYTHING. The rule is actually not bad - the first $25 or 25% of your earnings (whichever is greater) doesn't count against your weekly benefit amount. Then they subtract the rest from your weekly benefit. So you always end up with more money by working part-time + getting partial unemployment than just unemployment alone.\n\nAnd yes, EDD is totally different from tax reporting. Don't confuse the two systems or you'll create problems for yourself.

Thanks for explaining how the partial benefits work! That actually sounds better than I thought. So it's definitely worth picking up gig work even if it reduces my benefits some. I'll be super careful about reporting accurately.

but how do they know how much u make from doordash? its not like a regular job where the employer reports it right?

They may not know immediately, but EDD routinely cross-references tax records after the fact. When you file your taxes and report your self-employment income, that data eventually gets matched against your unemployment certifications. If they find a discrepancy, you'll get hit with an overpayment notice, possible penalties, and potential disqualification from future benefits. It's not worth the risk.

One more IMPORTANT thing - make sure you're keeping track of your miles and expenses for tax purposes! Even though you report gross earnings to EDD, you can deduct business expenses on your taxes. Get a mileage tracking app ASAP if you haven't already. You'll thank yourself at tax time when you can deduct $0.65+ per mile driven for deliveries.

Thanks for the reminder! I've been tracking miles in a notebook but a dedicated app would be smarter. Any recommendations for good apps? And do I track miles from my house to delivery areas or just while actively delivering?

I use Stride - it's free and easy. You can track miles from when you leave home if your home is your principal place of business (which for most gig workers it is). So basically when you turn on the app and start accepting orders, start tracking miles until you're done for the day and heading home.