Will EDD take my tax refund for remaining overpayment balance I'm already making payments on?

Yes, they absolutely can and likely will intercept your tax refund if the overpayment is considered fraud or if you have any missed payments on your payment plan. It's called the Treasury Offset Program (TOP). Even if you're making payments, they can still take your refund until the debt is completely paid. The payment plan doesn't protect you from tax intercepts unless you have a specific agreement stating otherwise.

same thing happened to my brother last year. he was paying $200/month but they still took his whole refund. he was PISSED

I HAD THIS EXACT SITUATION!!! Was on a payment plan for $4,200 overpayment (not fraud) and making payments for 6 months. They STILL took my entire refund ($3,100) and then had the nerve to send me a letter saying I still owed $320 after that! The system is completely broken!!! They don't care that you're responsibly making payments - they want ALL their money NOW. I called 48 TIMES trying to get someone to explain why they did this when I was following the payment plan. FORTY-EIGHT CALLS!!!

I work with tax issues frequently. Here's what you need to know: Non-fraud overpayments CAN be subject to tax refund offset, but there are some important distinctions. If your payment plan is with the EDD directly (not with TOP/IRS), you might have a case for preventing the offset. Call EDD immediately and specifically ask for their "Tax Refund Intercept Coordinator" - not every agent knows about this position. Ask them to document that you have an active payment plan in good standing. Also request a "Notice of Intent to Offset" if one hasn't been sent yet. You have rights to appeal before the offset occurs, but you must act quickly.

I had this same issue back in 2023. I found a service called Claimyr that helped me actually reach an EDD representative quickly. After days of failed attempts calling on my own, I tried Claimyr and got through to someone at EDD within 20 minutes who helped me sort out my offset situation. They have a video showing how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km and their website is claimyr.com. Definitely worth it when you need to actually speak to a human at EDD, especially for time-sensitive issues like preventing a tax offset.

Okay so actually this depends on whether ur overpayment is classified as fraud or non-fraud! If its non-fraud AND ur on a payment plan AND haven't missed payments, u might be able to avoid the offset but u gotta request it specifically. Its not automatic. If its fraud they'll take ur refund no matter what payment plan ur on.

Just to add one more important detail: if you do manage to reach EDD and confirm you have a valid payment plan, get EVERYTHING in writing. Ask them to email or mail you confirmation that your refund won't be offset. Too many people get verbal confirmations that later turn out to be meaningless. If they say your refund is protected, ask for the specific regulation or code they're citing, and get the name/ID of the representative you spoke with.

wait does this apply to state tax refunds too or just federal?