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That money would be later subtracted from his debit card. and more. I had gone back to check the balance and it was zero, Lombardi recalled. The state not only took his extra $2,100 but another $1,600 on top of that, totally draining his account. He called Bank of America, which told both him and 7 On Your Side that EDD handles resolving overpayments. He s also tried contacting EDD but was unsuccessful. To make matters worse, Lombardi has now received a tax bill which included not only the overpayment but the money that was his but had been taken away. This has gone from being an EDD issue to potentially an IRS problem that I might have down the road, he said. ....
A Los Angeles resident has made calling the EDD a daily routine as he tries to get updates on his pending claim. One day, he says he got through, only to be put on hold for nine hours. To make matters worse, Lombardi has now received a tax bill which included not only the overpayment but the money that was his but had been taken away. This has gone from being an EDD issue to potentially an IRS problem that I might have down the road, he said. The IRS is advising him to ask the EDD for a revised 1099. If he s unsuccessful, he should pay taxes only on the income he really earned. ....
Even though they opted in to have taxes withheld, unemployed Californians are getting big tax bills because the EDD skipped withholdings in the interest of getting checks out faster. ....