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Zoe Alexopoulos

Will $10,000 medical compensation payment stop my EDD benefits? Need urgent advice!

I'm currently receiving $650/week in unemployment benefits with about $4,200 left on my claim. I just got selected to participate in a medical research study that will pay me $10,000 as a one-time compensation for undergoing a minor outpatient procedure next month. The procedure itself only takes a day, and I'll be back to job searching immediately after. I'm really confused about how to handle this with EDD! Do I need to report this payment when I certify? Will this huge one-time payment completely disqualify me from benefits? After this payment, I'll go back to having zero income while job searching. Has anyone dealt with reporting unusual lump sum payments like this? I'm worried about losing all my remaining benefits when I really need them to cover bills while job hunting.

Jamal Carter

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Yes, you absolutely need to report this as income during the week you receive the payment. EDD requires you to report ALL income when certifying, regardless of the source. When you receive that $10,000, you'll be disqualified for benefits that week because it exceeds your weekly benefit amount. However, this doesn't cancel your entire claim - you'll just not receive benefits for that specific week. You can continue certifying as normal afterward, and assuming you meet all other eligibility requirements, your benefits should resume the following week when you have no income again.

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Thank you so much for the clear explanation! So just to make sure I understand correctly - I'll lose benefits for just the ONE week when I report the $10,000, but then my regular unemployment payments will continue the following week? That's such a relief if true.

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Mei Liu

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Dont listen to that person ur supposed to report WAGES not payments theres a difference. medical study compenstation isnt wages its like a gift or somethin. I didnt report my clinical trial $ last year and everything was fine. EDD only cares about actual job income

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Jamal Carter

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This is incorrect and potentially harmful advice. EDD's definition of income for certification purposes is broad and includes many types of payments beyond traditional wages. The certification question specifically asks if you received ANY income, not just wages. Medical study compensation is reportable income. Failing to report it could result in an overpayment determination later, penalties, and potentially fraud charges in severe cases.

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I was in a similar situation last year but with a much smaller amount (got $2500 for a focus group that took 2 days). I reported it during certification and yes, I didn't get benefits that week, but everything continued normally after that. Just make sure to keep documentation of exactly what the payment was for in case EDD has questions. They might send you a followup form asking for details about the work performed.

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That's really helpful to hear from someone who went through something similar! Did they contact you after you reported it or did everything just process automatically? I'm worried about accidentally triggering some kind of audit or review.

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Amara Nwosu

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wait i'm confused... are you actually WORKING that week though? because if you're just getting money for donating something and not actually doing a job, idk if that counts as "work". the EDD form asks about work and wages, not random payments you get. personally i would just not report it but maybe thats just me lol

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AstroExplorer

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The certification asks if you received ANY income, not just if you worked. Medical compensation counts as income even if you don't consider it "work" - it's still money you're receiving for a service/procedure you're providing. Not reporting significant income like $10k is a really bad idea and could result in serious penalties.

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I used to work for EDD as a claim specialist, and I can confirm you must report the $10,000 as income during certification for the week you receive it. The system will automatically disqualify you for that specific week since the amount exceeds your weekly benefit amount. However, this is important: make sure you continue certifying every two weeks WITHOUT INTERRUPTION, even for the week you report this income. If you stop certifying, your claim could be closed. Your benefits will resume for weeks where you have no income to report, as long as you meet all other eligibility requirements.

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Thank you for the insider perspective! That makes total sense. I'll definitely keep certifying without interruption. One quick follow-up: should I report this on the certification question about "work" or under "other income"? I want to make sure I categorize it correctly.

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You should report it under "other income" since it's not traditional employment. When it asks for the type of income, select "other" and if there's a field to explain, briefly note it was "medical research compensation" or similar. The key is to be transparent and accurate.

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Have you tried calling EDD directly to ask? Good luck with that lol. I've been trying for WEEKS to get someone on the phone about my missing payment and it's impossible. Always get the "we're experiencing high call volume" message and then it hangs up on me!!! SO FRUSTRATING!!!!!

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Dylan Cooper

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I had the same problem trying to reach EDD about my identity verification issue. After wasting hours on redial, I finally used this service called Claimyr (claimyr.com) that got me through to a rep in about 20 minutes. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Honestly, it was worth it for me because I needed to get my issue resolved quickly before I lost more weeks of benefits. They basically call EDD for you and connect you when they get through.

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Thanks for the suggestion! If I end up needing to call them directly, I'll definitely check that out. I'm hoping I can just handle it through the certification process based on the advice here, but it's good to know there's an option if I need to speak with someone.

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Mei Liu

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i just remembered - my cousin had to report a big insurance settlement payout on her EDD and they made her verify it wasnt fraud or something. they might send you extra paperwork so just heads up about that

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AstroExplorer

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That's a good point. Any unusual or large income amounts might trigger additional verification steps. Definitely keep all documentation about what the payment was for, when you received it, etc. Better to have that info ready than to be scrambling for it later.

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One more thing to consider - this payment might affect your tax situation for the year too. Both unemployment benefits and the medical study payment are taxable income. You might want to set aside some of that $10k for taxes so you're not surprised next April. I learned this the hard way!

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That's a really great point I hadn't even thought about! I'll definitely put some of the payment aside for taxes. Thank you for the heads up!

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To summarize what you should do: 1. Continue certifying for benefits every two weeks without interruption 2. Report the $10,000 payment in the week you actually receive it (not when you do the procedure) 3. Report it under "other income" and briefly describe it as medical research compensation 4. Keep all documentation related to the payment 5. Your benefits will pause only for that specific week 6. Benefits should automatically resume for subsequent weeks when you have no income If for some reason your benefits don't resume automatically after the week you report the income, then you may need to contact EDD directly to sort it out.

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Thank you so much for breaking it down so clearly! This is exactly what I needed to know. I feel much more confident about handling this situation now.

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