Reporting brokerage account withdrawals to EDD during weekly certification - different from 401K?
Hey everyone, I'm in a bit of a gray area with my EDD certification and could use some advice. I recently had to withdraw some money from my personal brokerage account (not retirement) to cover some bills while waiting for my unemployment to kick in. Now I'm confused about whether I need to report this when certifying for benefits. I only see options for reporting income from work or 401K withdrawals, but nothing specific about regular investment/brokerage accounts. Has anyone dealt with this before? I definitely don't want to get flagged for unreported income, but I'm also not sure if investment withdrawals even count as income for EDD purposes. The money was already taxed when I originally earned it... Thanks in advance!
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Miguel Herrera
Withdrawals from brokerage accounts are generally NOT considered income for EDD certification purposes unless you're realizing capital gains. The certification question about retirement is specifically asking about 401k, pension, or IRA distributions, which are treated differently. What matters to EDD is new income, not moving your already-taxed money around. If you're just withdrawing principal you previously invested, that's not income - it's just accessing your own money.
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Ava Thompson
•Thank you so much for clarifying! I did sell some stocks to get the cash, so there were some small gains (about $240). Should I report just that gain amount or nothing at all?
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Zainab Ali
my brother got in HUGE trouble for not reporting his stock sales when on unemployment!! EDD audited him later and he had to pay everything back plus penalties!!! be careful!!!
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Miguel Herrera
•That sounds like a different situation. Your brother probably had significant capital gains that counted as income. The key distinction is between simply withdrawing previously invested funds (not income) versus realizing profits from investments (which can be income).
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Connor Murphy
When I was on UI last yr, I called EDD directly to ask about this exact situation. Took me 3 DAYS of calling just to get through!!! The rep said only report the capital gains portion as income, not your original investment coming back to you. BUT different reps sometimes give different answers, so...
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Yara Nassar
•Have u tried Claimyr? It got me through to an EDD rep in less than 20 mins when I had questions about reporting income from side gigs. Saved my sanity after days of busy signals! They have this auto-dialing thing that keeps trying until it connects you. Check out their demo video at https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km or their website claimyr.com. Was totally worth it for getting a definitive answer straight from EDD.
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StarGazer101
I'm going through the EXACT same thing right now! I've been sooo stressed about this. Could you maybe update here once you figure out the right answer? From what I understand, there's a difference between "income" and "withdrawals" which is super confusing. The EDD form doesn't really distinguish these things clearly...
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Ava Thompson
•Will do! Based on the responses here, I'm thinking I should just report the capital gains portion ($240) to be safe. But I'm also considering calling EDD directly to get an official answer.
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Keisha Jackson
The technical distinction here is important: 1. Withdrawing cash from your brokerage account that's just returning your original investment = NOT reportable income 2. Capital gains realized when selling stocks/investments = Reportable income 3. Dividends or interest paid to your account = Reportable income The EDD isn't concerned with you accessing your own money, only new income earned during your certification period. Report any gains on your sales, but not the entire withdrawal amount.
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Paolo Romano
•so confusing their forms dont even ask about this specifically!! why make it so complicated???
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Keisha Jackson
•You're right - their forms could be much clearer. The certification question about income is asking about any form of income, even if it doesn't fit neatly into their categories. Capital gains technically fall under "any income" even if there's no specific checkbox for it.
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Yara Nassar
Dont forget that when you file taxes next year, the EDD can cross reference with IRS and see if you had income you didnt report while on unemployment. Better safe than sorry!
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Ava Thompson
•That's a great point. I'm definitely going to report the gains. Thanks everyone for the helpful advice! I think I have a much clearer understanding now.
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Yara Elias
I went through something similar last year and ended up calling EDD to get clarity. The rep I spoke with explained it this way: if you're just moving money from one account to another (like withdrawing cash from savings or brokerage), that's not income. But if you made money on investments (capital gains), that IS income and should be reported. Since you mentioned you had $240 in gains, I'd definitely report that amount. It's better to be transparent than risk an audit later. The EDD system can be confusing, but they're really looking for any NEW money you earned, not money you're just moving around between your own accounts.
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Nathan Dell
•This is really helpful! I've been dealing with a similar situation and the distinction between "moving money around" vs "new income" makes so much sense. Did the EDD rep mention anything about how they define capital gains for unemployment purposes? Like, is it just short-term gains or both short and long-term? I'm worried about getting different answers from different reps when I call.
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