Will EDD penalties affect my SDI benefits after paying off unemployment overpayment?

ui and sdi are diffrent programs so u should be fine. i had overpayment 2 yrs ago and got sdi last summer no problem

UI and SDI are completely separate programs, even though they're both administered by EDD. Overpayment penalties from UI shouldn't affect your SDI claim. Penalty weeks only apply to future unemployment claims, not disability claims. However, if you still had an outstanding balance on your overpayment, they might have deducted that from your SDI payments, but since you mentioned you've paid it off completely through tax intercepts, you should be good to go. Make sure you have documentation showing your overpayment was satisfied in case there's any confusion when you file for SDI.

If your overpayment was classified as fraud, it's a different situation than if it was a non-fraud overpayment. Fraud overpayments can have more serious consequences that might affect other benefit programs. Did your overpayment notice specify whether it was fraud or non-fraud?

i had this EXACT problem last year!!! SDI is diffrent dept than UI but they still put a hold on my disabilty payments cuz of the old overpayment even tho i paid it all. took WEEKS to fix it. kept getting the stupid recording when i called that said too many callers try again later. so frustrating!!!!!

To clarify some of the confusion in this thread: 1. Unemployment Insurance (UI) and State Disability Insurance (SDI) are separate programs administered by EDD, but they do share some backend systems. 2. Penalty weeks only apply to future UI claims, not to SDI claims. However, outstanding overpayment balances can potentially affect any EDD benefit. 3. Since you've fully paid your overpayment, you should be eligible for full SDI benefits without reduction. 4. That said, there can sometimes be system issues where your UI repayment isn't properly recorded in the SDI system. If this happens, you'll need to contact EDD directly. 5. I recommend checking your UI Online account to make sure it shows your overpayment as fully satisfied, and print/save that screen as documentation just in case. You should be able to receive your SDI benefits without issue, but having documentation ready will help if there's any confusion in their system.

My husband had an overpayment in 2024 and then filed disability in early 2025 and his first payment was delayed for three weeks while they "reviewed his account" but then everything went through fine after that with no reductions. I think they just check to make sure youve actually paid everything back before they start sending you new money lol

I work at a benefits advocacy organization and can confirm what others have said - UI and SDI are technically separate programs, but EDD's computer systems can sometimes create cross-program holds even when they shouldn't. The good news is that since you've fully satisfied your overpayment, you have a strong case for getting any issues resolved quickly. I'd recommend filing your SDI claim as soon as possible since there's a waiting period anyway, and if any problems come up, you can appeal or request an expedited review. Also, make sure to keep records of your tax intercept payments as proof of repayment - the IRS should have sent you documentation showing the payments were applied to your EDD debt. Don't let fear of potential issues delay you from filing when you need the benefits!

I went through something similar last year and wanted to share what worked for me. After paying off my UI overpayment, I was also worried about filing for SDI. What I did was call EDD's SDI line (not the UI line) and explained my situation upfront when I filed my claim. The rep made a note in my file that my UI overpayment was satisfied, which seemed to prevent any automatic holds. My first SDI payment came through on time with no issues. I'd suggest being proactive and mentioning your repaid overpayment when you file - it's better to address it upfront than let their system potentially flag it later. Also, if you can get through to someone on the phone, ask them to confirm that your UI account shows a zero balance. Good luck!

Just wanted to add my experience to help ease your mind - I had a UI overpayment of around $8,000 that was paid off through wage garnishment in 2023, and when I filed for SDI in late 2024 for a back injury, there were no issues at all. My benefits started on time and at the full amount. The key thing that helped me was keeping all my documentation showing the overpayment was satisfied. EDD sent me a letter confirming my debt was paid in full, which I saved along with my wage stubs showing the garnishments. When I applied for SDI online, there was actually a section where you can upload documents, so I included that satisfaction letter just to be safe. Like others mentioned, the programs are separate but it's always better to be proactive. Since you paid through tax intercepts, you should have received some kind of notice from EDD or be able to see it on your UI Online account. Definitely get that documentation ready before you file!

I'm going through almost the exact same situation right now! Had a UI overpayment that got paid off through tax intercepts last year, and now I need to file for SDI due to a chronic health condition. Reading through everyone's experiences here is really helpful - it sounds like most people eventually got their SDI benefits without major issues, even if there were some initial delays or system glitches. The advice about being proactive and having documentation ready makes a lot of sense. I'm planning to gather all my paperwork showing the overpayment was satisfied before I file, and maybe try calling the SDI line first to give them a heads up like Arjun suggested. It's reassuring to know that even when there were problems, people were able to get them resolved. Thanks everyone for sharing your stories - it's making me feel less anxious about moving forward with my claim!