Loans during ESD unemployment - Do I need to report this income?
Hey everyone, I've been struggling with rent lately and got offered a personal loan to help cover expenses. The thing is, I'm currently on unemployment and I'm confused about whether I need to report loan money to ESD. My initial thought was to just not claim benefits for the week I receive the loan funds since I wouldn't need the unemployment money that week. But now I'm second-guessing myself... Is a loan considered income that needs to be reported? Or since it's not earnings from work, am I okay? I really don't want to mess up my claim or get hit with an overpayment later. Anyone dealt with this before?
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Lily Young
Loans are NOT considered income for ESD purposes! You don't need to report loan money when filing your weekly claim. Income that needs to be reported is money you EARN through work, not money you BORROW that you'll have to pay back later. A loan is debt, not income.
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Marcus Williams
•That's a huge relief! I was really stressing about this. So I can still claim my weekly benefits even in the week I receive the loan money? I just want to make sure I'm doing everything right.
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Kennedy Morrison
I had the exact same question last year. The key distinction is whether you're EARNING money or just RECEIVING money. Unemployment only cares about earnings from work activities. Since a loan isn't earnings (you have to pay it back!), it doesn't affect your unemployment eligibility or weekly claim amount. You absolutely SHOULD still claim for the week you get the loan - skipping weeks can mess up your claim and potentially delay future payments unnecessarily.
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Wesley Hallow
•omg ppl dont realize this stuff!! my cousin got a personal loan last yr while on ui and he skipped filing that week cuz he thought he had to. BIG mistake!!! took him like 3 weeks to get his benefits back on track after that!!!
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Justin Chang
be careful tho... if its one of those payday loan things they can cause MORE problems for you in the long run. the interest is CRAZY high!!! maybe check if theres rent assistance programs instead?? just saying from experience
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Marcus Williams
•It's actually from a family member so the interest is really low, but thanks for looking out! I've looked into rent assistance too but the waiting lists in my area are super long right now.
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Grace Thomas
To clarify what everyone is saying: Under ESD rules, you only need to report EARNED income during your weekly claim filing. Things you must report include: - Wages from work (including part-time or temporary) - Self-employment earnings - Commissions - Tips - Holiday or vacation pay - Severance pay Things you DON'T need to report: - Loans (personal, family, bank, etc.) - Credit card advances - Monetary gifts - Food stamps/SNAP benefits - Most types of assistance programs However, you DO need to be available for work and actively job searching regardless of your financial situation. So don't skip filing your weekly claim just because you received loan money.
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Hunter Brighton
•This is 100% correct. I work with clients navigating the unemployment system, and this confusion comes up all the time. The ESD system is looking for activities or income that might reduce or eliminate your eligibility for benefits during a particular week. A loan doesn't fall into this category because it's not compensation for work.
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Dylan Baskin
I got a loan to fix my car last summer while on unemployment and didn't report it - no issues. BUT I DID keep filing my weekly claims. Don't skip filing!!! Had a friend who skipped a week and it was a HUGE HEADACHE getting everything back on track. She had to call ESD like 50 times before finally getting through.
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Lauren Wood
•If anyone needs to contact ESD, I found this service called Claimyr that helped me get through to an actual agent after weeks of trying. They basically hold your place in line so you don't have to keep redialing. Saved me so much frustration! Check out the demo at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 and their website is claimyr.com. I was skeptical at first but it actually worked when nothing else did.
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Wesley Hallow
u know what's really messed up?? the whole system is so confusing!! i got a personal loan from my uncle last yr and the esd rep i talked to told me i DID have to report it!!! but then i talked to somebody else who said i DIDNT have to report it. i ended up not reporting it and nothing bad happened but jeez make up ur minds ppl!!!!!
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Grace Thomas
•That's unfortunately common. Some ESD representatives can give incorrect information, especially during high-volume periods. The official policy is clear: loans are not reportable income for unemployment purposes. If you ever get conflicting information, I recommend asking the representative to show you where in the ESD handbook or website it states that policy.
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Hunter Brighton
One thing no one has mentioned: while the loan itself doesn't need to be reported, if you USE that loan to start a small business or self-employment activity, then any INCOME you earn from that activity WOULD need to be reported on your weekly claim. Just wanted to clarify that distinction in case it applies to your situation.
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Marcus Williams
•That's a good point but definitely doesn't apply to me. I'm just using it to cover rent until I can find a new job. Still actively looking and doing my job search activities every week!
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Lily Young
In summary: keep claiming your benefits, don't report the loan as income, and keep doing your job search activities. You'll be fine! And hopefully you find work soon so you can start paying off that loan and getting back on your feet financially.
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Marcus Williams
•Thank you all so much for the help! This community is amazing. I feel much better about the situation now and will definitely keep filing my weekly claims while continuing my job search. Really appreciate everyone taking the time to clarify this for me!
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