Indiana Unemployment Overpayment: Will IRS Take My Federal Refund for State UI Debt?
I got an overpayment notice from Indiana unemployment saying I owe them $3,400 from 2022. Just filed my 2023 taxes and expecting a decent federal refund. Anyone know if Indiana UI will intercept my federal return? Getting anxiety about this whole situation.
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Olivia Harris
Yes, Indiana can and will intercept your federal tax refund through the Treasury Offset Program (TOP) for unemployment overpayment debt. They typically send you a notice before this happens. You should have received a Notice of Intent to Offset. If you haven't received this yet, they might not take this year's refund.
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James Martinez
•shoot i did get something in the mail about TOP but didnt open it thinking it was junk 😭
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Olivia Harris
•Yeah that was probably it. You can call TOP directly at 800-304-3107 to see if you have any offsets pending
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Alexander Zeus
Hey guys, I've been helping people with these situations and honestly the best tool I've found is taxr.ai - it analyzes your transcript and tells you exactly if there are any offsets coming. Its only $1 and totally worth avoiding the anxiety. Check it out: https://taxr.ai
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Alicia Stern
•does it actually work? seems to good to be true tbh 🤔
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Alexander Zeus
•100% works. It caught an offset on mine that I had no idea was coming. Saved me from counting on money that wasnt gonna be there
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Alicia Stern
•just tried it actually and wow yeah its legit! showed me everything going on with my account 💯
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Gabriel Graham
Went thru this last year. They took my whole refund but at least the debt is gone now 🤷♀️
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Drake
bruh the system is so messed up fr. they overpay us then act surprised when we cant pay it back right away smh
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Sarah Jones
•fr fr 🤡 and then they charge interest on top of it
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Sebastian Scott
You might wanna set up a payment plan with Indiana UI before they take your refund. Sometimes they'll work with you if youre proactive about it
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James Martinez
•gonna try this tomorrow, thanks for the tip!
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Emily Sanjay
i had a 5k overpayment in 2021 and they took my refunds for 2 years straight. its rough but atleast its a way to pay it back without coming out of pocket
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Fatima Al-Hashimi
Just went through this exact same thing with Indiana UI last year. They'll definitely take your federal refund through TOP if you don't act fast. Call Indiana's unemployment office ASAP to set up a payment plan - even if it's just $50/month, it shows good faith and might prevent the offset. Also request a hardship waiver if you qualify. The offset usually happens within 2-3 weeks of your return being processed, so time is critical here.
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