EDIT 3/6/2021 - It's important to note that the bill in the CAA (second stimulus) that was passed December 27, 2020 that there was verbiage that suggested if repaying EDD would cause undue hardship that it could be waived. If you feel that it is the case for you, it is potentially possible to have the overpayments be waived.
It's also important to know that it says "the states are provided the AUTHORITY to waive PUA overpayments" ... which means this is NOT a guarantee -- it just gives them the ability to do so if they choose to.
Someone generous donated their time to write this for our blog. ❤️
Did you receive benefit ‘overpayments’ from EDD? Read on for a summary of what happened, how it will affect your federal taxes, and what you might consider doing about it.
For many these overpayments were a result of the EDD automatic certification period during the nine weeks ending March 14 - May 9, 2020. To rectify the emergency situation of the extremely long delays in issuing benefits to the newly unemployed, EDD auto-certified claimants en masse and issued full benefits regardless of whether one had or hadn’t certified their income.
The automatic certification temporarily solved the important problem of protracted benefit delays and created a different problem of overpayment for those who went back to work. Even those who used AskEDD to report that “EDD paid me and I returned to work” found it did not halt auto-certification.
Here is the correct way to send in overpayments without an overpayment letter:
1) Send a personal check, cashier's check, or money order made payable to the EDD.
2) Include a letter with the following information:
Name.
Mailing address.
EDD Customer Account Number (EDDCAN).
Week or weeks that the payment applies to.
Reason for returning the benefits.
3) Mail the payment and letter to: Employment Development Department – Overpayment Center PO Box 66000 Anaheim, CA 92806 Note: If you return the overpayment, you will still receive a notice from the EDD.
From EDD website:
What is the number for overpayments?
1-800-676-5737
Press 1 for English
Long message about census
Long message about online web pages
Long message about how to pay with credit card by phone or online
If calling about the payoff amount you MUST speak to EDD representative
Press 1 for overpayment balance
Enter Social Security number
Enter Birthday
*Please hold while we transfer your call" or "Your call cannot be completed, please try again later"
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Thank you, this is helpful! What are the tax implications of a returned overpayment? I don't want to be taxed on money I did not receive...