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Do tax refunds need to be reported to ESD for weekly unemployment claims?

I just filed my taxes for 2025 and I'm expecting to get a decent refund back. I'm currently on unemployment and doing my weekly claims. Do I need to report my tax refund to ESD once I receive it? Will getting a tax refund affect my weekly benefit amount or make me ineligible for benefits? I don't want to mess anything up and end up with an overpayment situation later. Thanks for any help!

Tax refunds don't count as income for unemployment purposes. You're just getting back money that was already yours (that you overpaid in taxes). You only need to report actual earnings from work, side gigs, self-employment, etc. Your refund won't affect your weekly benefits at all!

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Oh that's a huge relief! I was worried I'd have to report it. Thanks!

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nope!! refunds arent income, its just ur money coming back 2 u. i got like $3100 back last yr and never reported to esd and had no problems

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While the previous response is correct that tax refunds don't need to be reported, it's important to understand WHY. Tax refunds represent excess tax withholding you've already paid - it's essentially your own money being returned to you, not new income. ESD only requires reporting of new income sources like wages, self-employment, certain pension payments, etc. But you DO still need to report any side income from gigs, cash jobs, or part-time work during your claim weeks.

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THE ESD CONSIDERS BASICALLY EVERYTHING INCOME EXCEPT TAX REFUNDS!!! I had a small inheritance last year ($2000) and they counted it against me and reduced my benefits for that week. Then I got a tax refund of $4500 and they didn't care at all. The system makes NO SENSE. Be careful what you report because they'll use ANYTHING to deny benefits!!!

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I understand your frustration, but there is actually a logical reason for this distinction. Inheritances are considered new income coming to you, while tax refunds are just returning money you already earned and overpaid in taxes. ESD follows federal guidelines on what constitutes income for unemployment purposes. For anyone reading who needs clarification on what must be reported on weekly claims, here's a quick reference: MUST report: Wages, self-employment income, commission payments, bonuses, holiday pay, inheritance, lottery winnings, some pension payments DON'T report: Tax refunds, stimulus payments, child support received, SNAP benefits, insurance settlements for property damage

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Zara Khan

I had the exact same question last month! After trying the regular ESD number for days with no luck, I used Claimyr (claimyr.com) to get through to an ESD agent. They connected me within like 20 minutes when I'd been trying for days on my own. The agent confirmed tax refunds don't need to be reported since they're just returning your own money, not new income. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. Totally worth it for getting a definitive answer straight from ESD.

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does this rlly work? i keep calling esd and getting hung up on after waiting 4ever

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I actually think it depends on how much you get back. My cousin got a huge refund (like $9000) and she said ESD made her report it because it was over some threshold amount. Does anyone know if theres a maximum amount before it counts?

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There's no threshold amount for tax refunds - they simply aren't reportable income for unemployment purposes regardless of the amount. Your cousin may have been confused with another type of payment, or perhaps received an additional tax credit payment that wasn't just a refund of taxes she already paid. The ESD follows IRS guidelines on this, and standard tax refunds are never considered income for unemployment reporting purposes.

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Thanks everyone for all the helpful info! I feel much better now knowing I don't need to report my tax refund to ESD. This system can be so confusing sometimes and the website doesn't explain everything clearly. Appreciate all the responses!

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Glad we could help! Make sure you're still reporting any actual work income though, even small amounts. Better safe than dealing with overpayment notices later!

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This is totally off topic but since we're talking taxes - did anyone else's unemployment tax form (1099-G) show up super late this year? Mine just arrived yesterday and taxes are due in like 2 weeks! Stressing me out!!!

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ESD should have had all 1099-Gs sent by January 31st as required by law. If you just received yours, that's unusually late. You can always file for an extension if needed, but you'll still need to pay any estimated taxes owed by the regular deadline. If you're worried, you can also access your 1099-G electronically through your ESD account under the "1099-G tax forms" section.

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