NJ Unemployment Overpayment: Will State Still Garnish Taxes With Payment Plan?
I set up a payment plan with NJ unemployment for an overpayment. Can they still take my state tax refund even though I'm making monthly payments? Really need to know if I should even bother filing my state taxes rn if theyre just gonna take it anyway
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AstroAce
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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Omar Zaki
•ughhh thats what i was afraid of 😤 guess ill wait to file then
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Chloe Martin
•same thing happened to me last year. they took my whole refund even tho i never missed a payment 🤡
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Diego Rojas
Hey guys I've been helping people with tax issues and I found this tool called taxr.ai that can actually analyze your transcript and tell you exactly what's happening with garnishments and offsets. It's only $1 and way better than playing detective. Here's the link: https://taxr.ai
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Anastasia Sokolov
•for real? does it work with state tax issues too or just federal?
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Diego Rojas
•It works with both! It can even predict when youll get your refund if its not being offset. total game changer
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Anastasia Sokolov
•just tried it and WOW 🔥 literally told me exactly what was happening with my offset. worth way more than a dollar tbh
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Sean O'Donnell
pro tip: adjust your w4 so you dont get a refund next year. cant take what you dont give them 💅
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Zara Ahmed
•this is the way
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StarStrider
wait how much do u owe them? if its under $1500 sometimes they dont bother with the offset
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Luca Esposito
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
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Omar Zaki
•fr fr its like whats even the point of the payment plan 🤦♀️
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Nia Thompson
Check if you qualify for the fresh start program. Sometimes they can remove you from offset if you can prove financial hardship
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Omar Zaki
•how do u apply for that?
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Nia Thompson
•you gotta call the unemployment office and ask specifically about hardship relief for your payment plan. bring receipts tho they gonna want proof
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Leslie Parker
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!
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Caden Turner
•this is actually really good advice! @Omar Zaki you should definitely try this before filing. worst case they say no but at least you ll'know for sure. i wish i had thought of this when i was dealing with my overpayment situation
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Aisha Patel
•@Leslie Parker this is solid advice! I actually work in state revenue and can confirm that calling ahead sometimes works. They have discretion to honor payment plans if you re'in good standing. @Omar Zaki make sure you have your payment plan agreement number ready when you call - it shows you re serious'about compliance
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Abby Marshall
•@Aisha Patel thanks for the insider perspective! @Omar Zaki definitely worth a shot calling them. Also make sure you get any agreement in writing via email if they do agree to hold the offset - verbal promises don t always'stick when it comes to government agencies. Good luck!
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Bruno Simmons
•@Omar Zaki definitely call them first! I had a similar situation with my state overpayment and they actually agreed to suspend the offset as long as I stayed current on payments. Get it in writing though - I emailed them right after the call to confirm what we discussed and they replied back with the agreement. It saved my $2800 refund!
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