August 26, 2017 · 3 comments

in Where's my Money!?

Certified 5 weeks already and haven’t received a debit card. Is this normal? What number do I call??? Also if I chose to have taxes withheld.I do get that back when I file my income taxes, right?

  • Italia Tornabene

    Specializing wirh EDD forms and claims

  • NoWay Googal

    Unfortunately, you need to call the Bank of America division that handles the EDD debit cards at 1-866-692-9374. Normally, the cards are not issued until the account has a balance. That means you have to go through your one-week waiting period, plus you have to go through your 1st two-weeks of applying for jobs and certifying, then your account will have a balance. After that, it takes another two to four weeks for Bank of America to send you the card. Then the PIN number will be delayed another week to 10 days.

    Understand that the EDD employees neither know about this nor care.

    Workaround: AS SOON AS YOU FILE AN EDD CLAIM, if you do not already have a VALID EDD debit card CALL the 866-692-9374 number and get a card. When you get the card, call the 866-692-9374 and get a PIN. Don’t wait for it to come in the mail. BofA will verify your information over the phone to give you a pin.

    Point #2: When do you get your money back that you paid in taxes:

    You MAY get some of it back with your tax return, is the short answer.

    The long answer is that EDD benefits are taxable, so you may get none of it back.

    As with all taxes, taxes are due as soon as you earn the money. IRS and FTB won’t kick about it if you pay by the end of the year, but technically, taxes are due as soon as you earn money.

    Point #3: Refunds in general.

    Let’s say you are in the 25% tax bracket (without specifying Federal or State or both). Let’s say you paid 30% taxes over the course of the year (from each paycheck, 1099, whatever). You’re entitled to only 5% of that money back? Yes, you don’t get interest in the same way you don’t pay interest if taxes are paid by the end of the year. There’s more. You have already paid 30% taxes on the money you earned in the calendar year, including on the money you paid in taxes. However, when you get the 5% difference back (remember, you’re in the 25% tax bracket), that’s counted as income the next calendar year as if you had not already paid taxes on that money. So you get to pay taxes twice on your income tax refund.

    That’s why I say you may never get your money back. There’s no winning with tax refunds. You are better off to take the money and put it in a savings account and then give it to the IRS and FTB at the end of the year. What you’re doing is buying your peace from the IRS and FTB, so they don’t audit you, which is more expensive, in tax accountants and lawyers, than the savings account will benefit you.

    It’s not fair but I didn’t make the law, nor do I support the law nor enforce the law, so don’t take issue with the messenger.

    Good luck!

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