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EDD owes me money after tax refund intercept - waiting 9+ weeks for refund!

Has anyone had success getting money back from EDD after they take too much from your tax refund? My situation: I had a $4,200 overpayment from last year that I was making monthly payments on ($175/month). Without warning, they intercepted my state tax refund for $3,100 in March. When I checked my account balance, it showed I had actually OVERPAID my debt by $860! I called EDD right away (took 2 days of calling) and the representative confirmed I was due a refund but said 'the system automatically processes these in 4-8 weeks' and was honestly super rude about it. Well... it's been OVER 9 WEEKS now and still nothing in my bank account or by mail. I've called again twice but keep getting different answers - one person said they 'see no record of a refund being processed' and another told me to 'just keep waiting.' My online account still shows the negative balance (meaning they owe ME). Has anyone actually received their refund after overpaying? How long did it take? Any specific department I should ask for when calling?

Maya Patel

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same thing happend to me!! they took $2300 from my taxes even tho i only owed like $1800 and it took them FOREVER to give me back my money. i kept calling and they kept saying 'its processing' for like 3 months 🙄

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Isabella Brown

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3 MONTHS??? Omg I'm gonna lose my mind. Did you end up getting a paper check or direct deposit?

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I went through this exact situation last year. The key is to call and specifically ask for the "Collections Division" when you get through to a representative. They're the ones who handle overpayment refunds, not the regular claim specialists. Also, make sure you have your account number ready, along with the exact date they intercepted your tax refund and the exact overpayment amount you've already paid through your payment plan. In my experience, the 4-8 week timeframe is only accurate if your case has been properly flagged in their system. Often these refunds get stuck in limbo because the computer system doesn't automatically recognize the overpayment. I had to call three times before someone actually submitted the proper form to initiate my refund.

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Emma Garcia

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this is so frustrating!! why do they take our money instantly but take forever to give it back????

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Ava Kim

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Have you tried using Claimyr to reach EDD faster? I was in the same boat with an overpayment refund situation and spent weeks trying to get through the regular phone lines with no luck. I found this service called Claimyr (claimyr.com) that got me connected to an actual EDD rep in under 25 minutes. They have a demo video that shows how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km The rep I finally talked to explained that refunds after tax intercepts have to be manually processed, and many get overlooked unless you specifically ask for a supervisor to review your account. After I got through and had a supervisor look at my case, I got my refund within 10 days.

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Isabella Brown

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Thanks for the tip! I'm getting desperate at this point. Did they make you verify anything special when you asked for the supervisor review? I want to make sure I have all my documentation ready.

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Ava Kim

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They asked for my full name, last 4 of SSN, and the exact date the tax intercept happened. Having a copy of your tax intercept notice helps too. Make sure to specifically say you want them to check if a 'refund determination' has been processed yet. If it hasn't, that's when you need to request supervisor review.

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Ethan Anderson

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I work in financial services and deal with EDD issues for clients regularly. Here's what you need to know about tax intercept refunds: 1. The system that handles regular UI payments is completely separate from the system that processes refunds from overpayments. This is why representatives often give conflicting information. 2. By California law, they have 90 days to process these refunds, not 4-8 weeks as commonly stated by phone representatives. However, most are processed within 45-60 days. 3. The negative balance in your online account is a good sign - it means the system recognizes they owe you money. 4. If you've passed the 8-week mark, you should request to speak with an Overpayment Specialist and ask them to check the "Refund Status Code" on your account. If it shows "Pending" or "In Process," then it's moving through the system. If it shows "Not Initiated" or has no code, then you need to request a manual refund initiation. 5. Document every call with date, time, rep ID number, and what was discussed. This becomes crucial if you need to escalate.

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Isabella Brown

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This is incredibly helpful! I had no idea about the 90-day legal timeframe or the Refund Status Code. I'll definitely ask about that specifically. Do you know if calling the main EDD number is the right approach, or is there a direct line to Overpayment Specialists?

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Ethan Anderson

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You'll need to call the main UI number (1-800-300-5616) and navigate through the prompts. When you reach a representative, immediately ask to be transferred to an Overpayment Specialist. Be polite but firm - some reps will try to handle it themselves but don't have access to the refund processing system. If they refuse to transfer you, politely end the call and try again until you get someone who will transfer you.

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Layla Mendes

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why are you complaining?? you TOOK money that wasn't yours in the first place!! i had to pay back $6000 and they didn't give me ANY breaks. 9 weeks isn't even that long honestly. some of us waited over a YEAR just to get our initial benefits during covid!

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Emma Garcia

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dude thats not fair, they're talking about money they're OWED. overpayments happen for tons of reasons and not always because someone did something wrong. EDD makes plenty of mistakes

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Isabella Brown

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I understand your frustration with the system, but this isn't "free money" - it's literally MY money that they took too much of. I acknowledged the overpayment and was making regular payments on it. The issue is they took more than I actually owed through the tax intercept.

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I had this EXACT same problem back in January! They took my entire tax refund of $3,850 when I only owed $2,700 for an overpayment. I called probably 20+ times over 3 months and got nothing but excuses and rude reps. What FINALLY worked was sending a formal written request via certified mail to the EDD Appeals Board (not a regular appeal, but a specific request for overpayment refund review). I included copies of all my payment records and tax intercept documentation. About 2 weeks after they received my letter, I got a call from someone in their finance department who apologized for the delay and processed my refund immediately. Had the money 5 days later via direct deposit. Strangely enough, the person told me their system often doesn't automatically recognize refunds for people who had payment plans AND a tax intercept - something about the two systems not communicating properly. It sounds like that's what happened in your case too. I can share the address and format I used for the letter if you want to try that route.

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Isabella Brown

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Yes please! I would really appreciate that address and format. I've been trying to avoid taking time off work to visit an office in person, but at this point I need to try everything. Did you send it to the main EDD office or a specific appeals department?

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I sent it to: EDD Appeals Division - Refund Processing P.O. Box 826880 Sacramento, CA 94280-0001 Make sure to write "OVERPAYMENT REFUND REQUEST" in big letters at the top of your letter. Include your full name, last 4 of SSN, EDD Customer Account Number, phone number, and current address. List all payment amounts and dates (including the tax intercept), and calculate exactly how much they owe you. I also quoted California Unemployment Insurance Code Section 1379, which states they must process refunds in a timely manner. That seemed to get their attention!

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Maya Patel

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my cousin works at edd and she says they are SUPER backlogged right now with all these refunds because of some computer system update they did in april. she said if u want ur money faster u gotta get a tier 2 specialist on the phone but they like never answer the phones lol

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This is accurate. EDD implemented a new accounting system in April 2025 for overpayment processing, and there have been significant delays as they migrate data. However, they're still legally obligated to process refunds within the statutory timeframe. Requesting a Tier 2 specialist is definitely the right approach.

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Isabella Brown

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UPDATE: I finally got through today after trying for 2 hours this morning! The rep transferred me to an Overpayment Specialist who confirmed my refund was never actually initiated in the system despite what I was told before. She apologized and said she's manually processing it now, and I should receive a check within 10-14 business days. She also gave me a confirmation number for the refund request and her employee ID. Will update again when/if I actually get the money. Thanks everyone for your help and suggestions!

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Awesome! Make sure to write down that confirmation number somewhere safe. I'd still prepare that letter I mentioned just in case you don't receive the payment in 14 days. Sometimes the manual processing still gets stuck in their system. Fingers crossed for you!

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Ethan Anderson

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This is excellent news. The confirmation number is crucial - it means a formal record has been created. If you don't receive the refund within the timeframe, call back and reference that specific number. It will make follow-up much easier.

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