To stop unemployment benefits in California, simply stop certifying. The EDD pays you only for weeks you certify as unemployed, so once you skip a certification, payments stop on their own. If you want a clear record that you’re back to work, you can report the change through UI Online, on the paper Continued Claim Form (DE 4581), or by calling 1-800-300-5616 Monday through Friday from 8 a.m. to 5 p.m. Pacific time.1Employment Development Department. Step 8: End Your Benefits2Employment Development Department. Contact Information for Unemployment Insurance There is no “close claim” button.
How Skipping Certification Ends Your Claim
Every two weeks the EDD asks you to certify that you’re still unemployed and looking for work. Skip that certification and you won’t be paid for the week. After 30 days without a certification, your claim goes inactive on its own.1Employment Development Department. Step 8: End Your Benefits
An inactive claim is not a closed or forfeited claim. It just stops paying. That distinction matters if your new situation doesn’t last, because you can pick the claim back up rather than start over.
If You’re Still in a Certification Window
Started a job in the middle of a two-week certification period? You still need to complete that certification and report your work honestly. Report gross earnings for the weeks you actually performed the work, not the week the paycheck arrives.3Employment Development Department. How to Report Work and Wages The form asks whether you worked, your employer’s name, dates worked, total hours, and whether you’re still employed there.
You can certify online through UI Online, which is the fastest option, or by mailing the DE 4581.4Employment Development Department. Step 7: Continue to Certify UI Online access requires a myEDD account, an active claim, and your EDD Customer Account Number, which arrives by mail after you first file.5Employment Development Department. Frequently Asked Questions – UI Online
You Don’t Have to Stop If You’re Working Part-Time
Some new work doesn’t require you to end benefits at all. California lets you keep part of your weekly benefit while earning some income, and the calculation depends on how much you make in a given week:
- Earning $100 or less: the first $25 is ignored, and everything above $25 is subtracted from your weekly benefit amount.
- Earning $101 or more: the first 25 percent is ignored, and the remaining 75 percent is subtracted from your weekly benefit amount.6Employment Development Department. Reporting Work and Wages FAQs
If the subtraction zeroes out your benefit for that week, you get no payment, but you still need to certify and report the earnings. Unpaid volunteer work does not count against you as long as you’re still actively looking for paid work.6Employment Development Department. Reporting Work and Wages FAQs So if you’re weighing whether to just stop, run the numbers first. Continuing to certify with earnings reported may still put money in your pocket.
Reopening Later If You Need To
An inactive claim can be reopened. If the new job falls through, hours get cut, or you’re laid off again, you don’t file fresh. You reopen the existing claim, provided it was filed within the last 52 weeks and you haven’t exhausted the benefits on it.7Employment Development Department. Reopen an Unemployment Insurance Claim
The fastest route is through your myEDD account. You do not need to certify for the weeks you were working; just select the week you became unemployed again or had your hours reduced.8Employment Development Department. Claims FAQs Most reopened claims are processed within a few days to a week. Reopening by phone or mail is also available.
Taxes on the Benefits You Already Received
Stopping benefits doesn’t end your tax obligations for what you already collected. Unemployment compensation is taxable on your federal return. By January 31 of the year after you received benefits, the EDD makes Form 1099-G available through UI Online, or mails a paper copy if you haven’t opted for paperless delivery.9Employment Development Department. Tax Information (Form 1099G) Box 1 shows the total paid to you for the year, and Box 4 shows any federal tax withheld.
Report the Box 1 amount on Schedule 1 of your Form 1040 and include any Box 4 withholding on line 25b.10Internal Revenue Service. Topic No. 418, Unemployment Compensation If nothing was withheld, you may owe at filing time. To avoid an underpayment penalty, you generally need to have paid at least 90 percent of the current year’s tax liability or 100 percent of last year’s through withholding or estimated payments.11Internal Revenue Service. Topic No. 306, Penalty for Underpayment of Estimated Tax
California treats these benefits differently. Unemployment is not taxable on your state return, and you do not report the 1099-G on your California filing.9Employment Development Department. Tax Information (Form 1099G)
Update Covered California Within 30 Days
If you enrolled in health coverage through Covered California while unemployed, going back to work changes your household income and can change your premium subsidy. Report the change to Covered California within 30 days.12Covered California. How to Update Your Account Not reporting it can leave you receiving too much financial assistance, which you would owe back at tax time. If your new employer offers coverage, you’ll also get a special enrollment window to transition off the marketplace plan.
Overpayments Can Still Come After You Stop
The EDD can review past weeks even after you stop collecting. If the agency spots conflicting information about your earnings or eligibility, you may receive a Notice of Potential Overpayment (DE 1447). You have 15 days from the mailing date to respond with clarifying information.13Employment Development Department. Unemployment Overpayments and Penalties
If the EDD determines you were paid benefits you weren’t entitled to, it will send a Notice of Overpayment (DE 1444) with the total owed and a week-by-week breakdown.14Employment Development Department. Benefit Overpayments and Penalties Honest mistakes and EDD errors don’t carry a penalty, but you still owe the money. Fraud is treated differently: intentionally giving false information or withholding details adds a 30 percent penalty and can disqualify you from future benefits for up to 23 weeks.13Employment Development Department. Unemployment Overpayments and Penalties
Unpaid overpayments have teeth. The EDD can deduct them from future unemployment, disability, or Paid Family Leave benefits, withhold your federal and state tax refunds, intercept lottery winnings, file a court judgment, or place a lien on your property.13Employment Development Department. Unemployment Overpayments and Penalties Respond to any notice quickly rather than letting it sit.