EDD tax withholding question - will skipping federal tax option affect my payments?

You can absolutely choose not to have taxes withheld! I unchecked that box after my first payment because I needed the full amount. It won't delay anything or cause problems with your payments. Each certification is separate, so changing it now won't affect previous ones. Just be prepared to potentially owe taxes when filing your return next year. The 10% they withhold might not even cover your full tax liability anyway depending on your situation.

WATCH OUT!!! not paying taxes now WILL BITE U LATER!!! i did this last year and ended up owing almost $2000 at tax time!!! had NO IDEA unemployment was taxable federally. complete shock when i went to file!!! no payment plan options either had to put it on credit card with 24% INTEREST!! the EDD system is BROKEN and they don't make this clear AT ALL!!!!

To directly answer your question: Unchecking the tax withholding box won't interfere with your payments at all. You'll just receive the full amount instead of having 10% withheld for federal taxes. This is purely a personal financial decision. Since unemployment benefits are taxable income, you'll eventually need to pay federal taxes on them (California doesn't tax UI benefits). Some people prefer smaller payments now with tax withheld to avoid a large tax bill later, while others need the full amount immediately. You can change this preference with each certification period - the system treats each one independently. No need to worry about it flagging your account or causing delays.

i never check that box lol rather have money now and deal with taxes later

For anyone struggling to get through to EDD to ask questions like this - I used Claimyr last month after trying for DAYS to reach someone about my tax situation. It got me through to a rep in about 25 minutes! They have a demo video that shows how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km and their website is claimyr.com. Seriously saved me so much frustration and the rep was able to explain all my tax options clearly.

Im new to all this EDD stuff but I think i remember reading somewhere that if you don't withhold taxes they send you a form at the end of the year? Im not sure what its called maybe 1099 or W2 or something? Does anyone know what I'm talking about lol

I just went through this situation last month! When I first applied I checked the withholding box without thinking, but then realized I needed every penny to cover rent. I unchecked it on my next certification and got the full amount with no problems. My payments weren't delayed at all. Just be prepared for tax time - I'm putting aside a little bit each week in a separate account so I don't get blindsided.

wait unemployment is taxed?? nobody told me that when i signed up

Just to be super clear about the process - when you certify, you'll see this question: "Do you want federal income tax withheld from this payment?" Just select "No" instead of "Yes" and you'll get your full benefit amount. You can change this each time you certify if needed. It's completely up to you!

Just wanted to add my experience - I've been switching back and forth on the tax withholding option depending on my financial situation each month. Some certifications I need the full amount, others I can afford to have the 10% taken out. The system handles it perfectly fine either way and there's never been any confusion or delays. One tip: if you do decide to skip withholding, consider using a tax calculator online to estimate what you might owe next year based on your total expected UI benefits. That way you can set aside the right amount instead of guessing!