I owe an Unemployment overpayment, can they take that money from my Federal Tax Return?

I owe an Unemployment overpayment, can they take that money from my Federal Tax Return?

Postby daibhidh » Wed Feb 02, 2011 4:48 am

I was unemployed for almost a year and I am not sure why but they say they overpaid me in Unemployment benefits (even though I never filed a claim after I got a new job)! I am now off work due to pregnancy and wonder when I file my Federal Tax Return will they take what I owe from there or will they just keep my State Tax Return??? Thank you!
daibhidh
 
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I owe an Unemployment overpayment, can they take that money from my Federal Tax Return?

Postby connell » Wed Feb 02, 2011 4:50 am

You are probably safe. Your state would have to file suit against you and win in order to get a judgement. If they get a judgement they can pursue your assets, garnish your wages or your tax return. However, that would take a long time to happen, so your tax refund is safe.

In the meantime, contact your state and protest the overpayment. If you don't protest, the state's position will be deemed correct, whereas if you protest you will be given an opportunity to present your side (a hearing in Florida) and if you are correct the overpayment will be removed.
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I owe an Unemployment overpayment, can they take that money from my Federal Tax Return?

Postby carew » Wed Feb 02, 2011 4:57 am

You are probably safe. Your state would have to file suit against you and win in order to get a judgement. If they get a judgement they can pursue your assets, garnish your wages or your tax return. However, that would take a long time to happen, so your tax refund is safe.

In the meantime, contact your state and protest the overpayment. If you don't protest, the state's position will be deemed correct, whereas if you protest you will be given an opportunity to present your side (a hearing in Florida) and if you are correct the overpayment will be removed.
No. The IRS doesn't withhold refund for state unemployment.
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I owe an Unemployment overpayment, can they take that money from my Federal Tax Return?

Postby hewett » Wed Feb 02, 2011 5:03 am

They can not take your federal return, and depending upon ehich state you live in they will not be able to take your state return unless they put a lien against it. I have the same problem and asked my state which is MN if they would deduct what I owed UI and they said not unless they had a lien against my refund, and they didn't so they didn't touch my refund.
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