EDD tax withholding confusion - state vs federal form to adjust after claim ended?

You'll need to adjust both your state (DE-4) and federal (W-4) withholding forms. Unemployment benefits are taxable at both the federal and state level in California. To make up for the under-withholding during your UI period, you'll want to either: 1. Increase withholding on both forms by claiming fewer allowances/dependents 2. Request a specific additional amount be withheld on line 6 of the W-4 form If you know approximately how much UI you received without withholding, you can estimate the tax impact and divide by your remaining pay periods this year to determine the extra withholding needed.

dosent matter much cus they probly wont even send u the right tax forms anyways lol. i waited till APRIL last year for my 1099G and had to request it 3 times. EDD is a joke

i think your overthinking this. i didnt have anything withheld from my UI and just paid what i owed when i filed taxes. no biggie. but yeah if you want to adjust now its BOTH state and federal forms you need to do because UI is taxable income for both CA and IRS!!! dont forget to factor in that your probably in a different tax bracket now that your working vs when you were on UI.

If you want to be really precise about this, you can also make estimated tax payments directly to the IRS and California FTB. That way you don't have to mess with your employer withholding at all. For federal, use Form 1040-ES, and for California, use Form 540-ES. This might be easier than trying to calculate exactly how much extra withholding you need on your paychecks. Also, keep in mind that if your withholding for the year covers at least 90% of your tax liability OR 100% of last year's tax (110% if your AGI was over $150,000), you won't face any underpayment penalties.

just wanna say congrats on the new job!!! i'm still stuck in EDD hell trying to get my interview scheduled. been pending for 6 weeks now and cant get through on the phone

Something else to consider: if you're concerned about owing a lot at tax time, you can use the IRS Tax Withholding Estimator (https://www.irs.gov/individuals/tax-withholding-estimator) to get a more precise calculation. Just make sure you input your unemployment compensation in the appropriate section. I did this last year after switching from UI to full-time work and it helped me avoid a surprise tax bill. California FTB also has a similar calculator on their website for state taxes.

One technical note: When you complete your taxes next year, you'll receive a Form 1099-G from EDD showing the total UI benefits paid and any withholding that was applied. This needs to be reported on your federal 1040 (line 7 of Schedule 1) and on your California 540 form. Keep that form when it arrives next January/February.

one more thing... if u realy wanna be on the safe side you can also just make a direct payment to the IRS through their direct pay website. i did this when i realized i had UI without withholding. its easy u just go to the IRS website and click direct pay. same for california ftb they have a website to make payments. then u dont have to do all the paperwork for changing ur withholding at work!!

Just want to add that you should also check if your employer offers any payroll advance or bonus programs that might help with the immediate tax situation. Some companies will give you a small advance on future earnings if you explain you need to catch up on taxes from unemployment. Also, if you're really worried about penalties, remember that as long as you pay at least what you owed last year (or 90% of this year's liability), you won't get hit with underpayment penalties. The IRS and California are pretty reasonable about this stuff if you're making a good faith effort to catch up!

Another thing to keep in mind - if you're planning to stay at this new job for a while, you might want to consider slightly over-withholding for the rest of the year rather than trying to hit the exact amount. This way you'll get a refund instead of owing, which can be nice for peace of mind. You can always adjust your withholding back down next year once you're caught up. Also, don't forget that unemployment benefits might have pushed you into a different tax bracket temporarily, so the effective tax rate on those benefits might be higher than your regular income tax rate. Good luck with everything and congrats again on the new job!