EDD garnishing tax refunds for PUA overpayment - anyone experiencing this in 2025?

Yes, they absolutely can and WILL garnish both state and federal tax refunds for PUA overpayments. EDD started aggressive collection in 2025 for pandemic-era overpayments. The Treasury Offset Program (TOP) is specifically for federal tax refunds, but California also has the state tax intercept program that works similarly for state refunds. You need to file an appeal ASAP - you only have 30 days from the date on that notice. If you file the appeal in time, they should put a hold on collection activities including tax refund garnishments until your appeal is resolved.

happened to my cousin last month!! they took his ENTIRE state refund with no warning even tho he was making payments on his overpayment plan!! they dont care if u need the money, they just take it. system is rigged against us regular people

I work as a tax preparer, and I've seen several clients get their refunds offset for EDD overpayments this year. Here's what you need to understand: 1. For PUA specifically, they've been more aggressive with collections in 2025 because many of these claims are approaching their collection deadline 2. You need to request an appeal using the form DE 1000M. You can download it from the EDD website. Mail it with delivery confirmation so you have proof it was received. 3. If your appeal is pending, you can request a temporary hold on collection activities, but you MUST specifically request this - it doesn't happen automatically. 4. For federal tax refunds, you should receive a 60-day notice from the Treasury Department before any offset occurs. 5. For state refunds, the process is faster and has fewer protections, which is why it's critical to file that appeal immediately. Don't panic, but do act quickly. Many PUA overpayment cases are being resolved in claimants' favor if they can provide the documentation that was originally requested.

i think it depends on if u got fraudulent pua or just made a mistake? my brother got his tax return for 2024 no problem even tho he has an overpayment. but he proved he didn't do anything wrong on purpose, it was just a calculation error

I've been dealing with this exact situation! After trying for WEEKS to reach EDD about my overpayment appeal, I found a service called Claimyr that got me connected to an EDD representative in less than 20 minutes. It totally saved me from losing my tax refund! You basically pay them to navigate the phone system and get you connected to a real person. I was super skeptical at first but it actually worked. Check out their demo video to see how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km or go to claimyr.com. The rep I got connected with put a hold on my offset while my appeal is being processed.

EDD is THE WORST!!!! They waited THREE YEARS to tell me I had an overpayment then demanded $12,000 back immediately. I filed an appeal in November and they're STILL reviewing it. Meanwhile they took half my tax refund even though the appeal is pending!!!! They didn't even send me a notice before garnishing!!!! CRIMINAL ORGANIZATION!!!!!

Adding to my previous comment - I forgot to mention that under certain hardship conditions, you can request an overpayment waiver using form DE 1446W. If you can demonstrate that repayment would cause extraordinary financial hardship, and the overpayment wasn't your fault, EDD may waive part or all of the amount. For those worried about payment plans - yes, having an active payment plan *should* prevent tax refund interception, but the systems don't always communicate properly. If you're on a payment plan and your refund gets intercepted, contact EDD immediately with proof of your payment plan agreement.

@OP - Since your overpayment is classified as "non-fraud", you have a good chance at either getting a waiver or at minimum setting up a reasonable payment plan. The key steps now are: 1. File your appeal immediately (today if possible) 2. Request a hold on collections in writing as part of your appeal 3. Apply for the overpayment waiver using the DE 1446W form 4. Get through to EDD by phone to confirm they've received your appeal and put a hold on collections For the appeal itself, you'll need to explain why you believe you were eligible for PUA at the time you received it. Include any documentation from that period showing your employment was affected by COVID. Many of these cases are being resolved favorably when proper documentation is provided.

my friend said if u owe less than $10k they cant garnish wages but can take tax refunds. is that true?? cuz now im confused about whats gonna happen with my situation

I'm going through something very similar right now! Got hit with a $6,200 PUA overpayment notice in December and they already intercepted my federal refund last week - no warning at all. What's really frustrating is that I provided all the documentation they asked for back in 2022, but apparently it "wasn't sufficient" according to their review. One thing I learned the hard way - if you're expecting a state refund, act FAST. Federal refunds have more protections and longer notice periods, but California can grab your state refund much quicker. I wish I had known about the appeal process sooner. For anyone else reading this - don't wait like I did. Even if you think your case was legitimate, file that appeal immediately when you get the notice. The burden of proof is unfortunately on us to show we were eligible, even years later with documentation that might be hard to find now. Hang in there OP - sounds like you're taking the right steps with the appeal!

I'm dealing with this exact nightmare right now too! Just got my overpayment notice two weeks ago for $4,800 from PUA in 2021. What really gets me is that I was a gig worker whose income completely dried up during COVID - I thought I was doing everything right when I applied. Now they're saying I didn't provide enough documentation to prove my work was affected by the pandemic. I immediately filed my appeal and requested the collection hold, but I'm still terrified they'll grab my tax refund before the appeal gets processed. Has anyone had success with the hardship waiver (DE 1446W)? I'm a single parent and there's no way I can pay back nearly $5K without it completely destroying my finances. The whole situation feels so unfair - they approved these claims initially, many of us relied on that money to survive during the worst of the pandemic, and now years later they're coming after us with aggressive collection tactics. I know mistakes happen, but the way they're handling this is causing so much stress and financial hardship for people who were already struggling. Stay strong everyone - it sounds like appeals are working for some people, especially for non-fraud cases!

I'm going through this exact same situation right now! Got hit with a $5,400 PUA overpayment notice just last week and I'm absolutely panicking about my tax refund. Like you, I've been trying to call EDD nonstop with no luck getting through. What's really frustrating is that I was a freelance photographer and my business completely dried up during COVID - I had contracts cancelled left and right. I provided what documentation I had when I originally applied, but now apparently it's not enough years later. Reading through these comments has been both terrifying and helpful. I'm definitely going to file my appeal today and request that collection hold. The fact that they can grab state refunds so quickly without much warning is really scary since I'm counting on that money for my rent next month. Has anyone had success getting through to EDD early in the morning? I've been trying afternoons but maybe I need to call right when they open. This whole situation is causing me so much anxiety - it feels like they're punishing us for trying to survive during the worst economic crisis of our lifetimes. Thanks for posting this OP, at least now I know I'm not alone in dealing with this mess!