EDD tax withholding checkbox confusion - weekly taxes on unemployment benefits

i think ur supposed to leave it UNCHECKED if u want taxes taken out. the box literally says 'do not withhold' so checking it means dont take taxes

The correct answer is: If you want federal taxes withheld from your weekly benefits, do NOT check the box. The checkbox specifically says "Do NOT withhold Federal Income Tax from my benefits payments." So: - If you check the box = NO taxes withheld (you'll pay later) - If you leave it unchecked = YES, 10% federal taxes will be withheld It's definitely confusing because it's phrased as a negative. If you've been checking the box for 3 weeks, no taxes have been withheld. You can change your preference on future certifications, but you can't change it retroactively for past payments.

The EDD website is so poorly designed! I made the exact same mistake my first time filing for unemployment back in January. The checkbox says "Do NOT withhold Federal Income Tax from my benefits payments" which means: ✓ Checked = NO tax withholding □ Unchecked = YES to tax withholding (10%) It's completely counterintuitive. I only realized my mistake when I got my first payment and noticed it was the full amount. Had to call EDD six times before getting through to fix it for future payments.

just save 10% of ur benefits on ur own, thats what i do. EDD system is trash anyway

If you're struggling to reach EDD about this or any other issues, I was in the same boat last month. After days of trying, I used a service called Claimyr (claimyr.com) that got me through to an EDD rep in about 20 minutes. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. The rep confirmed that unchecked = withhold taxes, checked = don't withhold. I was able to make sure my settings were correct going forward.

Its confusing bcause they use a double negative kind of language!! Same thing happened to me and i end up owing $2,345 when i filed my taxes!! so annoying!!!!!!

To clarify for everyone regarding tax withholding on EDD benefits: 1. The checkbox reads "Do NOT withhold Federal Income Tax from my benefits payments" 2. If you CHECK the box, you are telling EDD NOT to withhold taxes 3. If you leave it UNCHECKED, you are allowing EDD to withhold the standard 10% for federal taxes Unfortunately, you cannot change past certifications. For any future certifications, leave it unchecked if you want taxes withheld. If you're concerned about past certifications where taxes weren't withheld, consider making estimated tax payments directly to the IRS to avoid penalties next tax season.

@original poster - You can check your payment history in UI Online to see if taxes were withheld. Go to Payment History and look at the amounts. If the "Amount Paid" is 10% less than the "Weekly Benefit Amount" then taxes were withheld. If they're the same, then no taxes were taken out.

I had this exact same problem when I first started collecting! The wording is so confusing - it's like they designed it to trick people. What helped me remember is thinking of it this way: the checkbox is asking you to "opt out" of tax withholding. So if you want taxes taken out (which is smart!), don't check the opt-out box. For future reference, you can also check your payment amounts to verify - if your weekly benefit amount is $300 but you only received $270, then the $30 difference is the 10% federal tax withholding. If you got the full $300, then no taxes were withheld. Don't beat yourself up about the mistake - literally everyone I know who's dealt with EDD has made this error at least once. The important thing is you figured it out now!

This is such a helpful thread! I'm new to unemployment and was literally staring at that same checkbox yesterday trying to figure out what it meant. The double negative wording is so confusing - "Do NOT withhold" makes it sound like you're supposed to check it if you DON'T want taxes taken out, but then you second-guess yourself because it's phrased backwards. I ended up leaving it unchecked based on my gut feeling, but reading all these explanations makes me feel much more confident about my choice. It's crazy how many people make this same mistake! You'd think after all these years EDD would just change the wording to something clearer like "Check this box if you want 10% federal taxes withheld from your benefits" - that would be so much easier to understand. Thanks everyone for breaking this down so clearly. Definitely saving this thread for future reference!

This thread is a lifesaver! I'm in my second week of unemployment and was completely puzzled by that checkbox. I actually called my friend who collected unemployment last year and she told me the WRONG thing - she said to check the box if I wanted taxes taken out. Thank goodness I found this discussion before I certified again! It's really frustrating that such an important financial decision comes down to confusing wording. I work in customer service and we're always trained to use clear, positive language instead of double negatives. Something like "I want 10% federal taxes withheld from my benefits: YES/NO" would be so much better. For anyone else reading this - the key takeaway is: UNCHECKED = taxes withheld, CHECKED = no taxes withheld. I'm going to screenshot this thread so I don't forget!

Wow, reading through all these responses really shows how widespread this confusion is! I just started collecting unemployment last month and thankfully stumbled across a similar discussion before I made my first certification. The wording really is terrible - I actually had to read that checkbox three times before I convinced myself that leaving it unchecked was the right choice. What's crazy is that this seems to be such a common problem, yet EDD hasn't done anything to fix the confusing language. Like others have mentioned, a simple "Check here if you want 10% federal taxes withheld" would eliminate all this confusion. It's such an important decision that affects people's tax situations later on. For anyone just starting out: remember that the checkbox is essentially asking "Do you want to OPT OUT of tax withholding?" So if you want taxes taken out (which most people do to avoid a big bill later), leave it blank/unchecked. If you want to handle taxes yourself, then check the box. The double negative phrasing makes it confusing, but once you think of it as an "opt out" checkbox, it becomes clearer. This thread should definitely be bookmarked - it's going to help so many people avoid this costly mistake!

This thread is incredibly helpful! I'm about to file my first unemployment claim next week and honestly had no idea about any of this tax withholding stuff. Reading everyone's experiences with that confusing checkbox is both enlightening and terrifying - I can totally see how the double negative wording would trip people up. The fact that so many experienced people got it wrong initially really shows how poorly designed that form is. I love the "opt out" mental framework that @Freya Pedersen mentioned - that's going to stick with me when I'm filling out the certification. Quick question for the group: Is there any way to change your withholding preference mid-claim, or are you stuck with whatever you choose on your first certification? I want to make sure I get it right from day one, but it would be good to know if there's a way to fix it if I somehow mess up despite all this great advice! Thanks to everyone who shared their stories - this community is amazing for helping newcomers avoid these costly mistakes!

This whole thread has been incredibly eye-opening! I've been collecting unemployment for about 6 weeks now and honestly just clicked through that checkbox without really thinking about it. After reading everyone's experiences, I'm now terrified that I've been doing it wrong this whole time. The "opt out" explanation really clicked for me - it makes so much more sense when you think of the checkbox as asking "do you want to opt out of tax withholding" rather than trying to parse that confusing double negative wording. I'm definitely going to check my payment history tonight to see if the amounts match my weekly benefit or if taxes have been taken out. It's really frustrating that EDD has created such a widespread problem with their poor interface design. Like others have said, a simple positive statement like "Check here to have 10% federal taxes withheld" would solve this for everyone. The fact that this same confusion comes up over and over again shows it's a systemic issue, not just individual user error. Thanks to everyone who shared their mistakes and solutions - this thread is going to save so many people from tax headaches! I'm bookmarking this and will definitely be more careful with my future certifications.

Just wanted to chime in as someone who made this exact mistake during my first unemployment claim back in 2022! I checked that box thinking I was being responsible by requesting tax withholding, only to realize months later that I had actually been opting OUT of withholding the whole time. Ended up owing over $1,800 when I filed my taxes. The confusion is 100% understandable - that checkbox wording is absolutely terrible UX design. I've always wondered if it was intentionally confusing to discourage people from having taxes withheld (more cash flow issues for the state maybe?), but that's probably just my cynical side talking. For anyone still confused, here's how I finally remembered it: Think of that checkbox as a "No Thank You" button for tax withholding. If someone offered you a service and you wanted it, you wouldn't check the "No Thank You" box - you'd leave it blank. Same logic here. Really hope EDD fixes this someday, but until then, threads like this are so valuable for helping people avoid this expensive mistake!

As someone who's been through this same exact confusion, I completely feel your pain! That checkbox is honestly one of the worst examples of confusing government interface design I've ever encountered. Here's the simple rule that finally helped me: Think of it as an "OPT OUT" checkbox. The box is asking if you want to opt out of tax withholding. So if you want taxes taken out (which you do), leave it UNCHECKED. If you want to handle taxes yourself later, then check it. To verify what's been happening with your past certifications, log into UI Online and check your Payment History. Compare your "Weekly Benefit Amount" to the "Amount Paid" - if they're the same, no taxes were withheld. If the Amount Paid is about 10% less, then taxes were properly withheld. The good news is you can change this on your next certification! Just remember: UNCHECKED = taxes withheld, CHECKED = no taxes withheld. Don't beat yourself up about the confusion - this thread shows just how many of us have struggled with the exact same thing!

This is such a valuable discussion! I'm completely new to unemployment and was already stressing about all the forms I'll need to fill out. Reading through everyone's experiences with that confusing checkbox really opened my eyes to how tricky the EDD system can be. The fact that SO many people - even those who've been through it before - made the same mistake really shows this isn't a user problem, it's a design problem. The "opt out" mental framework and "No Thank You button" analogy that people shared are going to be lifesavers when I get to that certification form. I'm definitely bookmarking this thread and will be extra careful to leave that box UNCHECKED when I want taxes withheld. It's amazing how this community helps newcomers avoid these costly pitfalls! Thanks to everyone who shared their mistakes and solutions - you're potentially saving people thousands of dollars in unexpected tax bills.

This is such an important thread for anyone dealing with EDD! I went through this exact same confusion when I started my claim a few months ago. That checkbox wording is absolutely terrible - I literally had to Google it because I was so afraid of making the wrong choice. What finally helped me understand it was thinking of it like this: the checkbox is basically EDD asking "Should we NOT take taxes out?" If you want them to take taxes out (which most people do to avoid a big tax bill later), then you answer "no" to that question by leaving the box unchecked. I also want to echo what others said about checking your payment amounts to verify you're doing it right. When I got my first payment and saw it was exactly 10% less than my weekly benefit amount, I knew the tax withholding was working correctly. It's honestly ridiculous that EDD hasn't fixed this confusing language after so many people struggle with it. A simple "Check here if you want 10% federal taxes withheld" would solve this problem for everyone. Until they fix it, threads like this are absolutely essential for helping people avoid expensive mistakes!

This thread is incredibly helpful! I'm about to start my unemployment claim and had no idea this tax withholding checkbox even existed, let alone how confusing it would be. Reading everyone's experiences really shows how widespread this problem is - it's clearly a design issue, not user error. The mental frameworks people have shared are brilliant: thinking of it as an "opt out" checkbox or a "No Thank You" button for tax withholding makes the confusing wording finally make sense. I'm definitely going to remember that if I want taxes taken out (which I do!), I need to leave it UNCHECKED. It's frustrating that EDD hasn't fixed such obvious confusing language after so many people make this expensive mistake. A simple rewording like "Check here if you want 10% federal taxes withheld from your benefits" would eliminate all this confusion instantly. Thanks to everyone who shared their stories and solutions - you're potentially saving newcomers like me thousands of dollars in unexpected tax bills! I'm bookmarking this thread for reference and will be extra careful when I get to that certification form.

This thread is a perfect example of why user experience design matters so much, especially for government services! I'm a UX designer and reading through everyone's experiences with that checkbox makes me want to cry - this is such a textbook case of how poor interface design can cause real financial harm to people. The double negative wording ("Do NOT withhold...") is essentially asking users to solve a logic puzzle when they're already stressed about their financial situation. In UX, we have a principle called "don't make me think" - interfaces should be intuitive, not require mental gymnastics to understand. A better design would be something like: "Federal Tax Withholding: ○ Yes, withhold 10% for federal taxes (recommended) ○ No, I'll handle taxes myself" Simple, clear, no room for confusion. The fact that this same issue comes up repeatedly shows EDD really needs to invest in user testing and plain language design. Until then, threads like this are literally saving people thousands of dollars! For anyone still confused: UNCHECKED box = taxes withheld. That's it. Don't overthink it!