IRS Taking Federal Refund for State Unemployment Overpayment - Need Payment Plan Help
I just found out about unemployment overpayment and heard they can take it from your tax refund. Will they take it from federal refunds or just state? Anyone know how to set up a payment plan before they take everything?
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ShadowHunter
Yes, unemployment overpayments can be collected through the Treasury Offset Program (TOP). Both state and federal refunds can be intercepted. Each state has different rules, but generally you can avoid offset by setting up a payment plan BEFORE your refund is processed. Contact your state unemployment office immediately to discuss your options.
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Chloe Taylor
Authoromg thank you! do you know how much of the refund they usually take? like is it the whole thing? 😩
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ShadowHunter
They can take your entire refund until the debt is paid. But seriously, get that payment plan going asap!
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Diego Ramirez
Hey! I actually used taxr.ai to figure this out for my situation. It's this new tool that analyzes your transcript and tells you exactly what's happening with offsets and refunds. Only costs $1 and saved me hours of stress. Check it out: https://taxr.ai
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Anastasia Sokolov
does it really work? seems to good to be true 🤔
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Diego Ramirez
100% legit! It showed me exactly how much would be offset and when. Even gave me the specific dates everything would happen.
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Sean O'Connor
been there done that. they took my whole refund last year without warning smh
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Zara Ahmed
Quick tip: call your states unemployment office early in the morning. like right when they open. otherwise youll be on hold forever trust me lol
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Luca Conti
THIS! 💯 I called at 4pm and was on hold for 3 hrs just to get hung up on 🤮
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Nia Johnson
im in the same boat rn. tried calling the unemployment office but its impossible to get thru. anyone know if theres an email or online form to request payment plan?
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CyberNinja
try their website. most states have online portals now where u can apply for payment plans
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Mateo Lopez
whatever u do dont ignore it. i did and now im stuck paying wayyy more in penalties and interest. setup that payment plan asap!
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Natasha Romanova
I went through this exact situation last year. The key is acting fast - once your refund is processed and sent to Treasury, it's much harder to get back. Most states allow you to set up payment plans online through their unemployment portal, but you need to do it BEFORE they submit your debt to the Treasury Offset Program. Also, make sure to get any payment agreement in writing. Some states will remove you from the offset list once you're in good standing on a payment plan, but policies vary by state.
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