I have been laid off so I filed for unemployment insurance. My boss told me I would have no problem getting it. My mother told me not to apply for my tax return yet (even though I already have) "because the EDD will count that as income and will delay paying you until the return is used." But that doesn't make sense to me cos that's a refund for what I've paid in from working plus child tax credits and other credits for things like paying for childcare. Plus the EDD is going to be paying me like half of what I was making while working (from what I have heard) maybe even less. And I've never heard of the EDD doing this.
Now I'm stressing and really don't need any extra stress. It just doesn't make sense. I mean, I know for a fact severance pay doesn't count with the EDD so why would my return count?
Asked by Anonymous at 12:59 AM on Feb. 16, 2011 in Money & Work
Answer by Lev8mysoul at 1:08 AM on Feb. 16, 2011
What is EDD (not estimated date of delivery)? Unemployment comp is based on what you were earning. They will pay you half up to a limit. If you were earning 150K a year you will get the limit, not half. Your mother is confused. One thing to watch for this year (April 2012 filing date) is that they generally don't take any withholding out of unemployment comp. but you still have to pay taxes on it. So you might need to pay quarterly estimated taxes this year. Or maybe you won't owe anything between the reduced income and child creidts, but you should check at the end of the year at the lastest. I hope you find a new and better job very soon.
Answer by LoveMyDog at 8:23 AM on Feb. 16, 2011
Answer by HotMama330 at 11:06 AM on Feb. 16, 2011