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I'm collecting UI in California and was receiving well before Covid-19. I've always checked the box to have taxes withheld. I understand that the additional $600 is not free money and taxes will be due but even after checking the withholding button, they're only withholding out of my weekly $450 and they are giving me the entire $600. Am I missing something? Thanks for any help!
I'm collecting UI in California and was receiving well before Covid-19. I've always checked the box to have taxes withheld. I understand that the additional $600 is not free money and taxes will be due but even after checking the withholding button, they're only withholding out of my weekly $450 and they are giving me the entire $600. Am I missing something? Thanks for any help!
thats odd... go back and double check that the box is still checked.
I put down that I wanted taxes taken out.. and they take the taxes out of both.
That's incorrect. The $600 is taxable on federal level and should have the option to have the 10% withheld for federal taxes.
From 15-20 DOL guidance letter to states on FPUC
6. Taxable Income. The $600 FPUC is taxable. Therefore, states must include FPUC
when preparing 1099Gs, and must, consistent with Section 3304(a)(l8), FUTA (26
U.S.C. §3304(a)(18)), withhold taxes from the weekly benefit amount and from the
$600 FPUC, when an individual elects to have taxes withheld.
There's nowhere on the claim form to check a box to have taxes withheld from the $600, only the regular benefits. I always have taxes taken out of my benefits, and if there was a block to check, it would be checked. When I certify on Sunday, I'll look again, but I haven't seen it yet.
There's nowhere on the claim form to check a box to have taxes withheld from the $600, only the regular benefits. I always have taxes taken out of my benefits, and if there was a block to check, it would be checked. When I certify on Sunday, I'll look again, but I haven't seen it yet.
Are claimants required to pay taxes on UI benefits?
Yes, the Federal Tax Reform Act of 1986 provides for federal taxation on UI benefits. Claimants may voluntarily request that EDD withhold 10 percent of weekly benefits for federal taxation of UI benefits. This voluntary withholding request is contained in question seven on the Continued Claim Certification, DE 4581. The voluntary withholding request must be made each week that the claimant wishes to have federal taxes withheld from benefits.
If selected for regular UI it's also supposed to be taken out for FPUC $600 as well. Maybe a glitch?? Maybe others can chime in on whether they've seen the $600 be taxed at 10% if they selected taxes be withheld when certifying for benefits each week. Personally I wouldn't have anyone "hold" my money. Bird in hand is worth two in the bush. And who knows how circumstances will play out over the rest of the year in terms of ones potential federal tax liability for 2020 due April 15th 2021. Just my opinion.
EDD isn't taking any taxes out of the $600, only my regular benefits. I'm going to try to email EDD and ask them about it.
keep the money in your own bank account. why have California hold it? you don't know for sure how your taxes for 2020 for feds will play out right now or what your earnings and/or tax liability may be. You save the money in your account just as easily as they can.
keep the money in your own bank account. why have California hold it? you don't know for sure how your taxes for 2020 for feds will play out right now or what your earnings and/or tax liability may be. You save the money in your account just as easily as they can.
When I fill out my W-4's I claim zero, and have $10 extra withheld from CA.
I had 7 jobs, all of which were event contract based for conventions. Sometimes I only worked part-time, sometimes I worked full time, and I requested my schedule. And I made a lot of money working 14-16 hour days at Comic Con, too.
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