NJ Unemployment Overpayment: Will State Still Garnish Taxes With Payment Plan?

Even with an active payment plan, NJ can still offset your state tax refund for unemployment overpayment. Its part of the Treasury Offset Program. They technically have the right to take it, but some people report success calling the unemployment office to request they honor the payment plan instead.

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pro tip: adjust your w4 so you dont get a refund next year. cant take what you dont give them 💅

wait how much do u owe them? if its under $1500 sometimes they dont bother with the offset

in the same boat rn. its so frustrating cause ur trying to do the right thing with the payment plan but they still come for ur refund smh

Check if you qualify for the fresh start program. Sometimes they can remove you from offset if you can prove financial hardship

Another thing to consider - if you're expecting a large refund, you might want to call NJ unemployment BEFORE filing and ask them to put a hold on the offset while you're actively making payments. Some people have had luck getting them to agree to this in writing, especially if you've been consistent with your payment plan. Won't hurt to try!