If you owe California EDD unemployment overpayment will they take your taxes?

This is exactly what I was scared of. So if I call EDD and set up payments before they refer it to FTB, that might protect my refund? How do I even get through to someone at EDD to arrange that?

same thing happened to my brother last year, they took his whole state refund and he still owed money after that

The FTB intercept is definitely real. I work in accounting and see this come up with clients occasionally. The key is acting before the referral happens - once it's in FTB's hands you have much less leverage to negotiate directly with EDD.

I've never heard of Claimyr before. Does it actually work for the overpayment department specifically or just general EDD calls? My situation is kind of specialized.

sounds sketchy to me tbh why would you need a service just to call the government

It connects you to actual EDD agents - same phone system, same agents. Once you're connected you can tell them specifically about the overpayment and ask about payment arrangements. The agent I spoke with was fully equipped to handle my overpayment situation.

not sketchy at all i used it for a different EDD issue and it legitimately works, EDD's phone system is just genuinely broken so you need workarounds

For federal tax refunds, the debt typically needs to go through the Treasury Offset Program (TOP). California EDD overpayments can potentially be referred there too but it's a separate process from the FTB state intercept. The state refund intercept is more direct and faster. Federal is possible but usually takes longer to get to that stage.

ok so state refund is more immediate danger got it. i need to deal with this asap

Both are possible depending on how long the debt has been outstanding and how EDD classifies the overpayment. Non-fraud overpayments and fraud overpayments are handled differently too.

It says non-fraud on the notice. I didn't even know waiver was an option. What are the chances of actually getting a waiver approved?

Waiver approval depends on your financial situation - they look at your income, expenses, and assets. There's no guarantee but if you're genuinely struggling financially it's worth applying. The waiver request form is DE 1446 and you submit it to EDD directly.

i applied for a waiver and got denied but i think i filled out the form wrong, wish i had known about this stuff beforehand

The notice is dated about 6 weeks ago so I think my appeal window might already be closed. Is that definitely it for appealing?

Unfortunately the 30-day deadline is pretty firm. There are very limited exceptions for things like not receiving the notice, but if you got it and just waited, it's likely too late to appeal the core determination. You still have the waiver and payment plan options though.

always appeal even if you think you'll lose, at minimum it buys you time and sometimes EDD doesn't show up to the hearing

California FTB is supposed to send you an Interagency Intercept notice before they actually seize a refund. You should get mail warning you that your refund may be offset. However this notice can sometimes come close to the time of intercept so don't bank on having a lot of lead time once you receive it.

ok so theres some warning at least. still would be nice to handle it before getting to that point

I actually didn't get a warning before mine was intercepted, got a letter after the fact explaining what happened. Maybe I missed something in the mail or it got lost. Don't assume the warning system works perfectly.

That is genuinely terrifying. You mean even after you pay it off you can still have issues?

yes because their systems don't always communicate with FTB quickly. payment doesn't always register before the intercept goes through. document everything religiously.

this is why i screenshot every single EDD transaction confirmation. learned this lesson the hard way too

Do you know the direct number for the collections unit or do you just have to call the main line and navigate through?

Main line is 1-800-300-5616, then you navigate to overpayments. There isn't really a separate published direct number for collections that I know of - it all routes through the main system which is part of why it's so hard to reach someone.

ive been trying to reach that department for two weeks straight and cant get through no matter when i call

ok you've convinced me, going to try this tonight because i genuinely cannot afford to lose my tax refund

seconded, used it when i had an urgent EDD issue and got through same day

fine fine i take back what i said earlier about it being sketchy lol if it actually gets you through to EDD when something this important is on the line then it makes sense

Yes the intercepted amount is applied to your overpayment balance. It reduces what you owe. EDD overpayments do accrue interest so ideally you want to resolve the debt as quickly as possible to minimize interest accumulation.

ok good at least it actually counts toward what you owe. still a bad situation but at least it's not totally pointless

One thing to note - interest continues accruing on the remaining balance after intercept. So if your overpayment is $2,800 and they intercept a $1,500 refund, you still owe $1,300 plus whatever interest has accumulated. Don't assume one intercept closes out the debt.

This is really helpful. I wonder if something similar happened in my case with the part-time reporting. How do you actually get them to go through it week by week with you?

Ask specifically when you have an agent on the phone - say you want to understand the basis for the overpayment calculation. Some agents are more willing to walk through it than others. Be polite and patient, it helps.

This is great advice. Employer wage records sometimes don't match what claimants report and there's often a legitimate explanation. Having an agent walk through the calculation is exactly the right move.

An active payment plan with EDD in good standing generally should prevent or pause the FTB referral. However 'generally should' is not a guarantee - EDD's system isn't always perfectly coordinated. The safest approach is to set up the payment plan as early as possible and then follow up with EDD to confirm the FTB referral has been put on hold. Get a confirmation number for everything.

so basically trust but verify, got it. going to call and make sure they actually note it in my account

Also keep making your payment plan payments on time because a missed payment can result in the arrangement being cancelled and the FTB referral being reinstated

That's basically correct. Acting early - ideally before EDD makes the FTB referral - gives you the most options. Once FTB has the debt you're dealing with two agencies instead of one and it gets more complicated.

ok that clarifies things a lot. timing is everything with this apparently

yeah pretty much, the whole thing is about acting fast before it escalates between agencies

This is exactly the kind of success story I needed to hear. So it is actually possible to protect your refund if you act now and get a payment plan in place.

Yes absolutely possible. The system is frustrating and takes time but it does work if you're persistent. The three week phone struggle was worth it when I got my full refund.

three weeks to get through on the phone is insane though. that's not ok. glad you got it resolved but EDD really needs to fix their phone situation

Is the hardship process the same as the waiver that was mentioned earlier or is it a separate thing?

They overlap. The waiver (DE 1446) covers situations where repayment would be against equity and good conscience or cause financial hardship. It's essentially the formal financial hardship option. Separate from a payment plan which just extends how long you have to pay.

wish i had known you could ask for financial hardship consideration, i just assumed i had to pay the full amount immediately and panicked

multiple people in this thread recommending it, i think thats enough social proof for me to try it

already tried it after the earlier recommendation, have a callback scheduled for tomorrow. fingers crossed i can get this payment plan sorted before anything gets referred to FTB

Good luck! Remember: payment plan request + waiver application can happen simultaneously. Don't feel like you have to pick one. And document everything with confirmation numbers.

You've got a clear plan now, that's half the battle. Go get it handled and protect that refund.

If you can't get through on the phone the normal way, don't waste two weeks trying - use that Claimyr service I mentioned. Time is literally money in your situation with the tax refund on the line.