EDD took overpayment from tax refund - Will balance update on account?
I'm so confused about my EDD overpayment situation! Back in November, EDD determined I was overpaid about $2,800 from when I briefly returned to work last summer but didn't report some hours (honest mistake!). I couldn't afford to pay it back all at once, and honestly I was hoping to set up a payment plan eventually but kept putting it off. Fast forward to now - I just got my tax refund and it's WAY smaller than expected. When I checked the IRS letter, I see they took out exactly the amount I owed EDD for the overpayment. But when I logged into my UI Online account today, it still shows the full $2,800 overpayment balance like nothing happened! Does anyone know how long it takes for EDD to update their system after they intercept your tax refund? Will this balance eventually disappear or do I need to contact them? I'm worried they'll try to collect twice since the system isn't updated!
15 comments
Brianna Muhammad
This is totally normal! EDD and the Treasury Offset Program (TOP) don't communicate instantly. When your tax refund is intercepted for an EDD overpayment, it can take 4-6 weeks for the payment to be processed and your UI Online account to reflect the change. The IRS has to transfer the funds to EDD, then EDD has to process and apply them to your account. Since the intercept just happened with your recent tax refund, I'd give it until mid-May before getting concerned. If it's not updated by then, call EDD to confirm they received the payment.
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Camila Castillo
•Oh thank goodness! That makes sense that there would be a delay. I'll wait a few weeks before panicking. Just nervous they'll try to collect again while waiting for the systems to sync up.
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JaylinCharles
Ughhh the EXACT same thing happened to me last year!!! The tax offset happened in March but my EDD account still showed I owed money until like MAY!!! I was freaking out thinking they were gonna garnish my wages next. I called EDD like 47 times (not exaggerating) and FINALLY got someone who confirmed they had received the money but just hadn't updated their system yet. The rep said something about quarterly batch processing?? So annoying. But yeah it WILL update eventually.
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Eloise Kendrick
•47 times?? omg i would die. they never pick up when i call
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JaylinCharles
•It was BRUTAL. I just kept redialing for like 3 days straight whenever I had free time. Would get to the menu then "we're experiencing high call volume" CLICK. I was about to lose my mind!
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Lucas Schmidt
I had this exact issue in 2023. The tax intercept happened but my UI Online account didn't update for almost 8 weeks. Don't stress about it, but if you want peace of mind, you should try calling EDD to confirm they received the payment from IRS. The customer service number is almost impossible to get through though. I used a service called Claimyr (claimyr.com) that helped me get through to an EDD rep in about 20 minutes instead of calling for days. They have a demo video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Totally worth it to get confirmation that my account would be updated and avoid more collection attempts.
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Camila Castillo
•Thanks for the suggestion! I might try that if I start getting collection notices or if nothing updates after a month. Right now I'll try to be patient since it sounds like the delay is normal, but good to know there's an option to get through if needed.
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Freya Collins
dude the edd and irs systems r like from the 1980s lol... they probly still faxing papers to each other or something. my cousin had this happen 2 yrs ago and she sed it took like 2 months to update!! just print out ur tax letter showing they took the $$ and keep it as proof incase they try 2 come after u again
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LongPeri
•This is actually really good advice. Keep documentation of the tax offset. The IRS provides a notice specifically stating which agency received the funds and how much. Save this as proof of payment in case there are any issues later.
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LongPeri
There are actually two separate processes happening here: 1. The Treasury Offset Program (TOP) intercepted your tax refund to pay your EDD debt 2. EDD needs to process this payment and update your account These systems don't communicate in real-time. Typically, the IRS sends batched payments to EDD periodically, and then EDD has its own processing timeframe. Here's what you should know: - EDD usually updates accounts 30-60 days after receiving funds - You can request a payment tracer from EDD after 45 days - Keep your IRS offset notice as proof of payment - If you receive any collection notices in the meantime, respond with a copy of your offset notice One important thing: check if the tax refund fully covered your overpayment including any penalties or interest. If not, you might still owe a small balance.
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Camila Castillo
•Thank you for the detailed explanation! The tax refund intercept was actually for the exact amount I owed, so hopefully that means it covered everything. I'll definitely hold onto that IRS notice just in case. Good to know I can request a payment tracer if it takes too long to update.
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Oscar O'Neil
Are you sure the tax offset was for your EDD overpayment? The government can take your refund for lots of different reasons - back taxes, child support, student loans, etc. Double check which agency got the money before assuming it went to EDD.
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Camila Castillo
•Yes, I'm 100% positive. The letter from the IRS specifically states it went to the California Employment Development Department for an unemployment overpayment. And the amount matches exactly what I owed EDD. I don't have any other government debts.
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Eloise Kendrick
wait so they can just TAKE your tax refund without asking???? that seems illegal. did they at least notify you before they did this?? im freaking out bc i have an overpayment too from last year that i havent paid yet...
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Brianna Muhammad
•It's completely legal through the Treasury Offset Program. EDD is required to send you a notice at least 60 days before they refer your debt to the TOP. The notice explains your appeal rights and how to avoid the offset by setting up a repayment plan. If you have an overpayment and want to avoid tax intercept, contact EDD immediately to set up a payment plan - even paying $25/month can prevent the offset process if you arrange it before they refer your debt.
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