EDD weekly benefit amount - is this before or after taxes? Will I get the full amount?
Just got my award letter showing my EDD weekly benefit amount (WBA) of $447. I'm confused about whether this is the actual amount I'll receive each week or if they're going to take taxes out of it first? I opted for tax withholding when I filed my claim, but the letter doesn't specify if the amount shown is pre-tax or post-tax. Anyone know if I should expect the full $447 to hit my Money Network card or will it be less? This is my first time on unemployment so I'm trying to budget accurately.
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Emma Thompson
The weekly benefit amount on your award letter is your GROSS amount before taxes. If you elected to have taxes withheld, they'll take out 10% federal tax (no state tax is withheld from CA unemployment). So you'd actually receive $402.30 each week after the withholding. Make sure to check your payment history in UI Online after your first payment to see the exact amounts. I found this out the hard way when budgeting last year!
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Javier Mendoza
•Thank you! That's exactly what I needed to know. Ugh, that's a bigger chunk taken out than I expected. So I should plan for about $400 weekly instead of the $447 they quoted me. Appreciate the clarity!
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Malik Davis
my wba is 375 and i get the full amount cuz i didnt check the tax withholding box. u can change it later if u want. they dont take state tax just federal
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Javier Mendoza
•Can I actually change my selection now? I'm thinking maybe I should just handle the taxes myself next year rather than getting less money each week. Do you know how to change that setting in UI Online?
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Emma Thompson
•Yes, you can change your tax withholding preference anytime by logging into UI Online, going to 'Contact EDD' and selecting 'Tax Withholding' as the category. Just be aware you'll owe those taxes when you file next year if you don't have them withheld now.
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Isabella Santos
I think it depends on what you selected when you filed!!! I didn't have taxes withheld from mine and got the full amount BUT had to pay it back at tax time and it was A LOT!! Like $1500 I wasn't expecting!!!
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StarStrider
•This is an important point. If you don't have taxes withheld now, you'll definitely owe them when you file your tax return. Unemployment benefits are fully taxable as income at the federal level (though California doesn't tax them at the state level). Many people are surprised by this tax bill if they haven't planned for it.
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Ravi Gupta
If you're struggling with tax questions, you might also have issues reaching EDD representatives for other matters. I had so many questions about my claim but couldn't get through on the phone until I found Claimyr (claimyr.com). They got me connected to an EDD agent in about 15 minutes after I'd been trying for days on my own. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Definitely worth it when you need to actually talk to someone at EDD.
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Freya Pedersen
•Does that service actually work? I've been trying to get through to EDD for a week now about my claim. Keep getting the "we're experiencing high call volume" message and then they hang up on me. So frustrating.
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Omar Hassan
Everyone is giving good advice about the taxes, but I also want to point out that you need to verify the WBA is correct based on your earnings! When I first got my award letter, they had calculated my benefit using incomplete wage information. I had to provide additional earnings proof through the appeal process, and my weekly amount increased by over $150! Double-check the calculation against your base period earnings (usually the first 4 of the last 5 completed calendar quarters before you filed).
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Javier Mendoza
•Oh wow, I hadn't even thought about that. How do I know if they have all my earnings? I worked at two different companies last year - one full-time job for 7 months and then a better-paying job for the last 5 months. The $447 seems low based on what I was making at the second job.
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Freya Pedersen
just so you know the letter is just saying what ur eligible for, you still have to certify every 2 weeks to actually get paid. some ppl think they automatically get money after getting that letter lol
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Javier Mendoza
•Thanks for the reminder! I did figure out the certification part - I've set a calendar reminder for every other Sunday to make sure I don't forget. The UI Online system sent me an email about that too.
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Malik Davis
also u might get more if u have dependents did u add that when u applied
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Javier Mendoza
•I don't have any dependents, so that wouldn't apply to my situation. But that's good info for others who might be reading this thread!
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StarStrider
To summarize what everyone has correctly shared: 1. The WBA listed is the gross amount before any tax withholding 2. If you elected tax withholding, 10% will be withheld for federal taxes only (California doesn't tax unemployment benefits) 3. You can change your withholding preference anytime through UI Online 4. If you don't withhold taxes now, you'll need to pay them when filing your tax return 5. Verify your award amount is based on complete wage information from all employers 6. Remember to certify every two weeks to receive payments Most people find it easier to have taxes withheld rather than face a potentially large tax bill later, but it's a personal financial decision.
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Javier Mendoza
•Thank you for laying it all out so clearly! This thread has been super helpful. I think I'll stick with having the taxes withheld for now - better to get slightly smaller payments than deal with a tax headache later. And I'm definitely going to check those wage calculations since I worked at two different places last year.
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