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Unemployment Insurance and tax refund?

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?

Answer Question
 
Anonymous

Asked by Anonymous at 12:59 AM on Feb. 16, 2011 in Money & Work

Answers (3)
  • Your tax refund is not counted as income. Contact your unemployment office and ask them so you can know whether the answer I gave is correct.
    Lev8mysoul

    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. 

    LoveMyDog

    Answer by LoveMyDog at 8:23 AM on Feb. 16, 2011

  • Unemployment benefits are usually 50% less than what you were making when you were working. And you do need to pay income tax on it. You can choose to have them take it out when they issue you a check or pay it when you do your taxes.
    HotMama330

    Answer by HotMama330 at 11:06 AM on Feb. 16, 2011

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