EDD tax refund after winning fraud appeal - how to claim withheld taxes?
I'm super stressed trying to figure out how to get my tax refund back from EDD! My situation: I had a fraud allegation on my unemployment claim for 2022 (honestly no idea why - I reported everything correctly). EDD withheld all my state tax refund while this was pending. After waiting FOREVER, I finally had a hearing with a judge in July 2025 who ruled in my favor, stating I did NOT knowingly or purposely commit fraud (which I knew all along!). But now I'm totally stuck - I have the favorable decision letter but zero idea how to actually get my withheld tax refund released. Has anyone dealt with this before? Do I contact EDD or FTB? Is there a special form? The decision letter doesn't explain the next steps at all, and I'm worried if I don't take action soon I'll never see that money. It's almost $2,400 which I really need right now.
22 comments


Danielle Mays
You need to contact the Franchise Tax Board (FTB), not EDD. Since your taxes were withheld through the Tax Offset Program, FTB is the agency that actually has your money. Call them at 800-852-5711 and explain you won your EDD appeal. Have your appeal decision number ready when you call. They usually require you to fax or mail a copy of the judge's decision before they'll release the funds. It typically takes 4-6 weeks after they receive your documentation for the refund to be processed.
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Derek Olson
•Thank you so much! I had no idea I needed to contact FTB directly. Do you know if there's a specific form I need to fill out along with sending the decision letter? Or is just sending the decision enough?
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Roger Romero
I had this EXACT same problem last yr!!! the whole process is so confusing. i called edd like 15 times and no one new what i was supposed to do. finally got someone who explained that EDD sends something to FTB to release the funds but they dont do it automatically after the hearing u have to actually ask them to??? makes no sense.
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Anna Kerber
•The EDD/FTB system is completely broken! They'll take your money instantly but make you jump through impossible hoops to get it back. Been there myself twice. The government will STEAL FROM YOU and act like they're doing you a favor when they finally return what was rightfully yours. Makes my blood boil every time I think about it.
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Niko Ramsey
I went through this exact situation last year. Here's what you need to do: 1. First, make a copy of your appeal decision document (the one stating you didn't commit fraud) 2. Call EDD at 1-800-300-5616 and request they send a "Release of Withhold" to the Franchise Tax Board. Be specific about requesting this document. The regular representatives might not know about this process, so ask to speak with a tier 2 specialist if needed. 3. Get a confirmation number for this request and write down the name of the representative 4. Wait about 10 business days (this gives EDD time to send the release to FTB) 5. Then contact FTB at 800-852-5711 to confirm they received the release and ask about your refund timeline The entire process usually takes 4-8 weeks from the time you initiate the release request. Keep all your documentation in case you need to follow up.
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Derek Olson
•This is incredibly helpful, thank you! I've been trying to call EDD for the past two days but can't get through - keeps saying they're experiencing high call volume. Is there any other way to request this "Release of Withhold" document? Like through UI Online or by mail?
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Seraphina Delan
If you're having trouble getting through to EDD, I'd recommend using Claimyr. I was in the same situation last month - couldn't get through for days. Claimyr got me connected to an EDD rep in about 15 minutes. It was seriously worth it for something this important. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km and their website is claimyr.com. The rep I spoke with was able to initiate the tax refund release process right away.
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Jabari-Jo
•is claimyr legit? sounds sketchy giving access to a third party when its about tax stuff. has anyone else used this???
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Seraphina Delan
•It's completely legitimate - they don't access your account or personal information. They just connect you to EDD's phone system and get you past the busy signals. You speak directly with an actual EDD representative.
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Kristin Frank
My cousin works for the state and she says theres actually 2 diffrent kinds of tax withholds with EDD. One is for fraud penaltys and one is for overpayments. Did ur hearing decision letter say specificly which one u had? That effects how u get the money back. If u had penalties they go thru a diffrent process then regular overpayments.
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Derek Olson
•The decision just says I didn't commit fraud and the case was dismissed. It doesn't specifically mention penalties or overpayments. Does that mean I had the fraud penalty type? The whole letter is pretty vague honestly.
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Danielle Mays
•If your case was dismissed entirely, it means you didn't have an overpayment either. This actually simplifies things. You just need the release of withhold as mentioned above. The dismissal means you're entitled to 100% of what was withheld.
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Roger Romero
hey wait did u have to pay back benefits too or just the tax thing? my brother had something similar happen but he also had to pay back like 6 weeks of benefits even tho he won his case. something about "non fraud overpayment" which made NO sense
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Derek Olson
•Thankfully just the tax thing! The judge completely dismissed everything, so I don't have to repay any benefits. Reading these comments makes me realize how lucky I got - sounds like many people have much more complicated situations with partial wins.
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Danielle Mays
One more important thing - when you do call EDD to request the Release of Withhold, be sure to mention that this was a "Section 1255.7 withholding" and you need a "Refund Release Notification" sent to FTB. Using these exact terms helps ensure you're connected with someone who understands exactly what you need. The standard representatives often don't handle these specialized requests frequently.
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Derek Olson
•Thank you! I've written down these exact terms. I'm going to try calling again tomorrow morning right when they open. If I still can't get through, I might try that Claimyr service someone mentioned above. I just want this resolved before the end of the year.
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Anna Kerber
NOBODY MENTIONED THE MOST IMPORTANT PART!!! There's a TIME LIMIT to claim this money back! You only have ONE YEAR from the date of your favorable decision to get this processed!!! After that the state KEEPS YOUR MONEY permanently! Happened to my sister - she waited too long thinking it would just automatically come back to her. DON'T WAIT!!!
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Derek Olson
•Oh my god, thank you for mentioning this! My hearing was in July so I still have time, but I'm definitely going to make this my top priority now. I had no idea there was a time limit!
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Jabari-Jo
i went through all this last year and got my tax refund eventually but when i filed my taxes this year it was all messed up because of the previous withholding. make sure u keep ALL the paperwork from this process for ur next tax return. the ftb sent me a weird form that i had to give my tax guy.
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Niko Ramsey
•Great point about tax implications. The refunded money isn't considered taxable income for the year you receive it back, but you'll likely receive a 1099-G adjustment form that needs to be included with your next tax filing to show the correction to the previous year's withheld amount. This prevents double-reporting of the income.
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Harold Oh
Just want to add that you should also request a written confirmation when you call EDD to request the Release of Withhold. Ask them to email or mail you documentation showing they've initiated the release process. This gives you proof if FTB claims they never received anything from EDD. I learned this the hard way when my case got lost in the system for 3 months because there was no paper trail. Having that written confirmation saved me when I had to escalate to supervisors at both agencies.
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Aurora St.Pierre
•This is such good advice! I've been burned by government agencies "losing" paperwork before. When I call EDD tomorrow, I'll definitely ask for written confirmation that they've sent the release to FTB. Do you know if they can email this confirmation, or do they only do regular mail? I'm worried about mail getting lost too since the postal service has been unreliable lately.
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