Should I report 1099 income on EDD certification? Unsure about $1500+ from independent contractor work
I'm so confused about how to handle my certification for this week! I worked as an independent contractor (1099) for 3 days and expect to earn over $1500, but I haven't actually been paid yet. Today is the deadline to submit my bi-weekly certification, and I'm not sure what to do. A friend told me I don't need to report 1099 income since independent contractors don't pay into CA unemployment insurance. But that doesn't sound right to me? I don't want to mess up my claim by underreporting income, but I also don't want to lose benefits I might be entitled to. Should I report the 1099 work on my certification even though I haven't received payment yet? And does this type of income actually affect my weekly benefit amount? I'm really stressed about making the wrong choice and getting hit with an overpayment later. Thanks for any help!
16 comments
Angelina Farar
You absolutely need to report ALL income when certifying, including 1099 work. It doesn't matter if the employer paid into UI or not. The question on the certification asks if you worked or earned any income - not just W2 income. You should report the income for the week you EARNED it, not when you get paid. So if you worked those 3 days during this certification period, report the expected income even if you haven't received payment yet. Your friend is giving you incorrect advice that could result in an overpayment determination later. EDD cross-references with tax filings, and they will eventually discover unreported income.
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Jessica Nolan
•Thank you! That's what I was afraid of. Do you know how they'll calculate my benefits for those weeks? Will I lose the entire week's payment because I made over $1500 in one week (my weekly benefit amount is around $450)?
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Sebastián Stevens
i did the same thing last yr and didnt report my doordash money cuz someone told me 1099 doesnt count... big mistake! edd found out when i filed taxes and now i owe like $4k in overpayments plus penalties :( definitely report it
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Bethany Groves
•This is correct. EDD systems automatically flag discrepancies between tax filings and what you reported during certification. The penalties can be severe if they determine it was intentional misreporting. Report all income when certifying, regardless of source.
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KingKongZilla
YES REPORT IT!! I got caught in this exact situation last year and ended up with a FALSE STATEMENT PENALTY which means 30% reduction in benefits PLUS having to pay back everything with interest. The EDD system is designed to catch these things when tax forms get filed. Better to report now and maybe get reduced benefits for those weeks than deal with the nightmare of fighting overpayment notices later!
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Rebecca Johnston
•wait so do u have to pay the full week back or just the difference? i'm confused how they calculate it
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Bethany Groves
To clarify how EDD handles 1099 income during certification: 1. Report income in the week you EARNED it (worked), not when paid 2. EDD uses a formula: you can earn up to 25% of your weekly benefit amount (WBA) without reduction 3. After that threshold, they reduce your benefit $1 for each $1 earned 4. If you earn more than your WBA + 25%, you receive $0 for that week So if your WBA is $450, you can earn up to $112.50 without reduction. If you earned $1500 in one week, you would receive $0 for that week but would still be eligible for the other week in your certification period where you didn't work. Reporting accurately now prevents overpayment notices and potential penalties later.
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Rebecca Johnston
•thx for explaining! makes more sense now
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Nathan Dell
I went through something similar and tried calling EDD to ask them directly but spent HOURS trying to get through... never could reach anyone. I ended up reporting everything just to be safe. Lost some benefits but better than owing money later. If you need to actually talk to someone at EDD about this or other issues, I finally got through using Claimyr (claimyr.com). They have this system that calls EDD for you and connects you when an agent is available. Saved me from wasting entire days on hold. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km Personally I think it's worth it when you need answers directly from EDD about complicated situations like yours.
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Jessica Nolan
•Thanks for the tip! I might need to call them to sort this out because I'm still not 100% clear on how to enter the exact amount when I haven't been paid yet. Appreciate the recommendation.
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Maya Jackson
my cousins roommate didnt report his etsy shop income and edd came after him 2 years later!!!! they got access to his bank statements and everything. not worth the risk just to get a couple extra weeks of benefits.
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Sebastián Stevens
wait im confused tho. if ur a 1099 worker arent u supposed to be on PUA not regular UI? or did that end?
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Bethany Groves
•PUA (Pandemic Unemployment Assistance) ended in September 2021. It was specifically created to help 1099 workers during COVID. Now we're back to the regular system where traditionally, 1099 workers don't qualify for unemployment benefits unless they had W2 wages in their base period. In this case, OP likely qualifies for regular UI based on previous W2 employment, but is doing some 1099 work while collecting benefits. All income still needs to be reported regardless of the source.
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Jessica Nolan
I just submitted my certification and reported the income. Better safe than sorry! I estimated the amount based on hours worked and my agreed rate. Hope I did it right... Thanks everyone for the advice and saving me from potential fraud penalties down the road!
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Angelina Farar
•You absolutely made the right decision. If the actual payment ends up being different from what you estimated, you can always contact EDD to make a correction. But reporting something is always better than reporting nothing when you've worked.
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Rebecca Johnston
honestly this whole system is so confusing!! i wish they would just explain things clearly on their website instead of making us figure it out ourselves 🤦♀️
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