I have a question about about an EDD claim back in 2020. I am self employed and may have incorrectly filed the claim.

Question

Back in 2020. I filed an unemployed claim but wasn't sure I was eligible since I was self employed and have my own S-Corp. I filled out the forms retroactively. I inadvertently told EDD that no income was received by me for those 2 retroactive months. After I hit submit, I realized that I was receiving payments from one client. I went back to EDD and requested the claim to be canceled. I wrote them that I believe I filled out the form incorrectly and wanted to rectify it. I got no response from them. They finally sent me a response on their website almost a year later saying that they reviewed my claim and was eligible. By then I had already sent the money back to them ($7400) and forgot about it. FOUR Years later (2024), they sent the money back to me. No letter, just a check. I don't know what to do about this. I am looking for some consultation. I currently live in Las Vegas.

James L. Arrasmith · Answer

This is a complex situation that involves unemployment insurance claims, self-employment, and potential errors in reporting. Here's a breakdown of the key points and some general advice: 
 
1. Potential incorrect filing: You filed an unemployment claim in 2020 as a self-employed individual with an S-Corp, which is a unique situation. 
 
2. Retroactive reporting error: You inadvertently reported no income for two months when you actually had income from one client. 
 
3. Attempt to rectify: You requested the claim be canceled and informed EDD of the potential error. 
 
4. EDD's delayed response: They reviewed your claim after about a year and determined you were eligible. 
 
5. Repayment: You had already returned the $7,400 you received. 
 
6. Recent development: Four years later (2024), EDD sent the money back to you without explanation. 
 
Given the complexity of this situation and the potential legal and financial implications, here are some steps you should consider: 
 
1. Seek professional advice: Consult with an employment lawyer or a tax professional who specializes in unemployment insurance and self-employment issues. They can provide tailored advice based on the specifics of your situation. 
 
2. Document everything: Gather all correspondence, claim forms, and financial records related to this claim and your attempts to rectify the situation. 
 
3. Contact EDD for clarification: Reach out to the California Employment Development Department to request a detailed explanation of why they sent the money back and what their current determination is regarding your eligibility. 
 
4. Review your tax situation: Consider how this might affect your tax obligations for both 2020 and 2024. You may need to consult with a tax professional. 
 
5. Consider your options: Based on the advice you receive, you may need to decide whether to keep the money, return it again, or take some other action. 
 
6. Be proactive: If you believe there's still an error, it's better to address it now rather than potentially face issues later. 
 
Remember, while you currently live in Las Vegas, this claim is under California law, so you'll need to deal with California's EDD and potentially consult with professionals familiar with California employment and tax law.

Q: I have a question about about an EDD claim back in 2020. I am self employed and may have incorrectly filed the claim.