Benefit Overpayments FAQs
A benefit overpayment is when you collect unemployment, disability, or Paid Family Leave (PFL) benefits you are not eligible to receive. To learn more, visit our main benefit overpayments page.
What’s the difference between fraud and non-fraud overpayments?
The EDD classifies overpayments as either fraud or non-fraud.
Fraud: If we determine that you intentionally gave false information or withheld information, the overpayment is considered fraud. You will have to pay a 30 percent penalty in addition to the overpayment amount. You may also be disqualified for future benefits for up to 23 weeks.
Non-Fraud: If the overpayment was not your fault, it’s considered non-fraud. You will receive a notice telling you if you have to repay the overpayment or if we need more information to determine if you were overpaid.
What are common reasons for overpayments, and how can I prevent them?
The most common reasons for an overpayment are:
- You incorrectly reported your wages and were overpaid.
- You collected benefits for a week, and we later determined you were not eligible that week.
To help prevent an overpayment, you must notify us if you:
- Returned to part-time or full-time work.
- Received wages from your employer.
- Need to report the death of someone receiving benefits.
- Recovered from a disability.
- Stopped PFL benefits before using the full eight weeks.
If you’re receiving disability or PFL, have your employer return the Notice to Employer of Disability Insurance (DI) Claim Filed (DE 2503) or Notice to Employer of Paid Family Leave (PFL) Claim Filed (DE 2503F). If you recover from an illness or injury or return to work, return the Notice of Automatic Payment (DE 2587) or Notice of Automatic Payment – PFL (DE 2587F) to the EDD.
Note: If you are receiving unemployment and return to work full time, stop certifying for benefits.
How does the EDD determine if I qualify for an overpayment waiver?
We primarily use your gross family income to determine if you qualify for a waiver. Gross income is your income before taxes and deductions.
We will review your income for the past six months. You will qualify for a waiver if your average monthly income was less than or equal to the amounts in the Family Income Level Table for that time period.
Family Income Level Table for July 1, 2023 through June 30, 2024 | Number of People in Family | Gross Monthly Income |
|---|
| 1 | $1,509 |
| 2 | $2,338 |
| 3 | $3,130 |
| 4 | $3,771 |
| 5 | $4,487 |
| 6 | $5,204 |
For families of seven or more, add $716 for each additional person.
We prepare the Family Income Level Table each State Fiscal Year following the requirements in Title 22 of the California Code of Regulations, Section 1375.
Where do I find my Claimant ID and Letter ID?
You can find your Claimant ID and Letter ID on the Benefit Overpayment Collection Notice (DE 8344JUDR). We will mail you the Benefit Overpayment Collection Notice 30 days after we mail the Notice of Overpayment or Notice of Denial of Benefits and Overpayment, or when an appeal is denied.
Your Claimant ID and Letter ID are also included on the following forms:
- Benefit Overpayment Statement of Amount Due (DE 8301R)
- Mailed to you 90 days from the mail date of your Notice of Overpayment and every 60 days until your overpayment has been paid in full.
- The final billing notice that you will receive for the collection of your overpayment.
Penalties
What is a Benefit Offset?
If you do not repay your overpayment, the EDD will take the overpayment from your future unemployment, disability, or PFL benefits. This is called a benefit offset.
For non-fraud overpayments, the EDD will offset 25 percent of your weekly benefit payments. For fraud overpayments, the EDD will offset 100 percent of your weekly benefit payments. Since the EDD cannot offset additional penalties, you must repay any penalty separately.
If the EDD offsets your weekly benefit payments to repay a disability PFL overpayment, you will receive a Notice of Overpayment Offset (DE 826).
Note: You can log in to UI Online or SDI Online (for disability claims only) to view payment activity, including any payments that have been reduced to cover an overpayment.
Why did the EDD take my federal or state income tax refund?
If you do not repay your overpayment and are owed a state or federal income tax refund, the EDD will take the overpayment from these refunds per section 12419.5 of the California Government Code. This is known as a tax offset.
You can avoid a tax offset if you repay your overpayment full before your taxes are offset.
How do I get my portion of refund for a joint tax return?
You must complete the Injured Spouse Allocation (IRS Form 8379) and send it to the IRS for review. You may download IRS Form 8379, call the IRS at 1-800-829-3676, or visit a local IRS office. Contact the IRS if you have questions about the form or need help completing it.
How long will it take for my federal or state tax offset to be applied to my overpayment?
Allow four weeks for your offset to be applied.
