ESD refund deposit arrived - scared to spend it after past overpayment issues

Omg literally same!!! Got $875 deposited yesterday with zero explanation. When I try calling the number it just says \

I understand the concern, but these refunds are actually legitimate. ESD recently completed an audit of 2024 claims and found calculation errors in their favor. The refunds are being issued to claimants who were underpaid due to these errors. They'll be sending official notices by mail within 14 days of the deposits, so keep an eye on your mailbox. Unlike overpayments, these are corrections in your favor, so the money is rightfully yours.

mine showed up 2 days ago ($940) and i already spent it lol. figured its my money anyway since they messed up in the first place. not stressing about it, ESD owes us after all the bs they put us through

Wish I had your confidence! Did you get any kind of letter or notification in eServices explaining the refund? I keep checking but there's nothing.

nope nothing in eservices but my bank deposit said \

I've been working with ESD claims for several years, and I can confirm these refunds are part of their 2024-2025 audit corrections. The department identified systemic errors in benefit calculations affecting roughly 14% of claimants from the past 18 months. The refunds represent the difference between what you received and what you should have received, plus interest in some cases.\n\nYou should receive an official explanation letter within 2 weeks of the deposit, but their notification system has been experiencing delays. If you need immediate confirmation, I'd recommend trying to speak with an ESD representative directly. Unfortunately, their phone lines are completely overwhelmed right now due to everyone calling about these refunds.

Thank you for this detailed explanation! Makes me feel a bit better. Any idea how long we should wait for the letter before getting concerned? And if we don't receive anything, what's the best way to get written confirmation? I just want something on paper showing this money is legitimately mine to keep.

They're supposed to send letters within 14 business days of the deposit. If you don't receive anything by then, I'd recommend sending a secure message through your eServices account specifically requesting documentation of the audit refund. Make sure to include the exact deposit amount and date in your message. They're required to respond to secure messages within 10 business days.

Has anyone had luck actually TALKING to someone at ESD about this? I've been calling for three days straight and can't get through. I need confirmation before I touch my refund ($1,690). Last time I trusted them, I ended up with an overpayment notice that took 8 months to resolve! I'm not going through that nightmare again.

I was in the same boat - couldn't get through for days! Finally tried Claimyr (claimyr.com) and got connected to an ESD agent in about 15 minutes. Worth every penny because the agent confirmed my refund was legitimate and part of the audit program. They even put a note in my file confirming the money is mine to keep. You can see how it works here: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 - saved me days of stress wondering if I could use the money.

Thank you!!! Going to try this right now. Need this resolved ASAP.

this whole situation is TYPICAL esd incompetence!!! first they cant calculate our benefits correctly, then they just dump money in our accounts with ZERO explanation, and now they wont even answer the phones to explain whats happening!!! i got $1100 and im spending it because ITS MY MONEY that they already shorted me on!!! the entire unemployment system in this state is a JOKE!!!!!

While I understand your frustration, I'd still recommend waiting for the official documentation before spending the money if you're in a position to do so. Even though these refunds are legitimate, it's always good practice to have the paperwork for your records, especially if you've had issues with ESD in the past.

Does anyone know if these refunds affect our taxes? Like do we have to report this as income for 2025? I'm so confused 😵‍💫

Yes, these refunds are considered taxable income for 2025, just like your original unemployment benefits were taxable when you received them. ESD will include this amount on your 1099-G form that you'll receive in January 2026. If you didn't opt for tax withholding on your original benefits, nothing will be withheld from these refunds either, so you may want to set aside some for taxes if possible.

I actually got a letter about mine yesterday! It came 3 days after the deposit. Says it's from their

That's great to hear! I'll keep checking my mailbox. Would you mind sharing what kind of breakdown they included? I'm curious what they're actually correcting with these refunds.

Sure! Mine showed they had calculated my base year wages incorrectly (they missed some earnings from a second job). The letter had a before/after chart showing the original weekly benefit amount vs what it should have been ($456 vs $512), then multiplied by the number of weeks I claimed (16), which equaled my refund amount.

UPDATE: Used the service recommended above and finally spoke to someone at ESD! The agent confirmed these refunds are legitimate and result from a calculation review they completed last month. They're sending letters to everyone but there's a backlog. She said we ARE entitled to keep the money and it will NOT need to be repaid (unless there was a system error with the specific amount). Feeling much better now!

Thank you for the update! That's really reassuring. Did they mention how long the letter backlog is? Wondering when I should expect mine.

my neighbor works for esd (not saying who lol) and they said the system generated these refunds automatically after they upgraded their software last month. apparently the old system was miscalculating benefits for years!! some people might be getting MORE refunds in the future too

MORE refunds?? after all the STRESS they caused everyone?? the least they could do is EXPLAIN whats happening instead of making us all panic!!! i bet they NEVER would have found these

To summarize for everyone concerned about these refunds:\n\n1. Yes, they are legitimate refunds resulting from ESD's benefit calculation audit\n2. Official documentation is being mailed but is delayed (expect within 2 weeks)\n3. The money is yours to keep - it's a correction of an underpayment\n4. The refunds are taxable income for 2025 (will be on your 1099-G)\n5. If you need immediate confirmation, contacting ESD directly is your best option\n\nI hope this helps ease everyone's concerns. This is a rare case where ESD is actually correcting errors in the claimants' favor!

Thank you so much for this clear summary! I think I'll wait for the letter before spending the money, but I'm definitely feeling much better about the situation. Really appreciate everyone's input and experiences.