EDD sending 2+ year old overpayment notices - losing tax refund over $2,000 debt
I'm completely shocked right now. My husband just got an EDD overpayment notice claiming he owes $2,075 from unemployment benefits he received back in early 2021! We haven't had any communication from EDD about this until yesterday when this notice appeared out of nowhere. What's worse, they've already intercepted his 2025 tax refund which we were counting on for some car repairs. The notice says something about 'incorrect reporting of wages' but he was laid off completely during that period and reported everything exactly as his employer verified. Has anyone else been blindsided by these ancient overpayment claims? Is there a statute of limitations on this? I'm wondering if this is some kind of automated system error since it's been over 2 years with zero communication until now.
19 comments
TommyKapitz
omg the SAME THING just happened to my brother!! got hit with a $1890 notice last week from 2021 benefits. EDD is desperate for $ apparently
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Louisa Ramirez
•Did your brother contest it? I'm wondering if we should just pay it to avoid problems or if it's worth fighting.
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Angel Campbell
This is actually becoming more common as EDD's audit systems catch up with their backlog. There is no statute of limitations on benefit overpayments - they can go back indefinitely, though typically they focus on the past 3 years. You have 30 days from the notice date to appeal this determination. You should immediately request all records related to the claim through your UI Online account. Look specifically for: 1. The exact weeks they're claiming were overpaid 2. The reason code for the overpayment (it should be on the notice) 3. Any income verification they're using to justify their determination If you believe the determination is incorrect, you absolutely should appeal. The success rate for appeals with proper documentation is actually quite high. While the appeal is pending, you can also request a waiver of the overpayment if repayment would cause financial hardship.
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Louisa Ramirez
•Thank you so much for this detailed info. The notice says the overpayment is for March-May 2021, and the reason code is something like "49-B earnings discrepancy". My husband did pick up some part-time gig work during that period but he reported every dollar... I'll definitely request those records asap.
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Payton Black
they did this too me last year and took my ENTIRE tax refund. I filed an appeal and won because they had the wrong employer information somehow. take EVERYTHING to the appeal - paystubs, layoff notice, any emails about your hours. They made so many mistakes during covid its ridiculous
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Louisa Ramirez
•That's encouraging to hear you won your appeal! How long did the appeal process take? I'm worried about them continuing to withhold money while we wait.
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Harold Oh
Been through this myself and it's a NIGHTMARE trying to get through to EDD to explain the situation. I spent 4 weeks calling daily and could never get past the automated system telling me they were experiencing "higher than normal call volume" (when is it ever normal??). Finally used Claimyr to connect with an actual EDD rep - their service puts you in the callback queue automatically so you don't have to keep redialing. There's a video explaining how it works at https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km and their website is claimyr.com. Within 2 hours I had a callback and got my similar issue resolved - turns out it was their error all along. Definitely worth talking to a real person before going through the formal appeal process.
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TommyKapitz
•Is that service legit?? Im so sick of calling edd 50x a day
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Harold Oh
•Yes it's legit - they just automate the calling process that gets you in line for a callback. You still talk directly to EDD representatives, not third-party people. Saved me days of frustration.
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Amun-Ra Azra
I work in tax preparation and we've seen a major increase in these EDD overpayment notices in the last 6 months. The system is flagging income discrepancies between what was reported during certification and what employers reported to the IRS. Unfortunately, many of these are due to timing differences or classification issues rather than actual fraud. Definitely file that appeal!
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Louisa Ramirez
•That's really helpful context, thank you! So it could be that my husband's gig work reported on 1099s might be triggering this somehow? Even though he reported it during certification?
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Summer Green
Some good advice here already, but I want to add that you should check if you qualify for an overpayment waiver. If the overpayment wasn't your fault (like EDD made the mistake or the system did) AND repaying would cause financial hardship, you can request a waiver. The form is DE 1446W. Also, if they're intercepting tax refunds, they've probably put this in the Treasury Offset Program. You can request a review of that separately from your appeal by calling the Treasury Offset Program call center at 800-304-3107. Documentation is absolutely essential here. Get everything in writing and keep copies of all communications with EDD.
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Payton Black
•this is great advice! wish i knew about the waiver before i spent months fighting my case lol
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Gael Robinson
Wait I'm confused about something. Does your husband have access to his UI Online account still? Because they're supposed to send multiple notifications before taking your tax refund. Did you check if your address was updated with EDD? Sometimes they send notices to old addresses and then claim they "notified" you.
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Louisa Ramirez
•That's a good point! We moved in late 2023 and updated our address with IRS but maybe not with EDD since we weren't getting anything from them anymore. I bet they sent notices to our old address. He can still log into UI Online so we'll check there for any electronic notifications too.
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TommyKapitz
anyone else notice that EDD always seems to find these "overpayments" whenever the state budget is tight?? just saying...
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Summer Green
•While the timing can seem suspicious, these audit processes typically run on regular schedules regardless of budget conditions. The current wave of overpayment notices is primarily due to completed cross-matching of employer wage reports with benefit payments, which takes time to process.
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Louisa Ramirez
UPDATE: We were able to log into the UI Online account and found several messages from the past 3 months that we never knew about (they didn't email notifications). Looks like they did try to contact us but we had no idea we needed to check this account years after benefits ended. Going to request an appeal tomorrow and gather all our documentation. Thanks everyone for your help!
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Angel Campbell
•Glad you found those messages! Make sure to mention in your appeal that you never received proper notification. While they can claim the UI Online messages were sufficient, a good argument can be made that a reasonable person wouldn't check an account for a service they no longer use. Keep us posted on how it goes!
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