NYS Unemployment Overpayment: Will they take both State and Federal refunds?

Yes, NYS can and will intercept both state and federal tax refunds for unemployment overpayments. They participate in the Treasury Offset Program (TOP) which allows them to collect from federal refunds. They'll usually take the state refund first, then if there's still a balance, they'll go after your federal refund.

I've been helping people with these issues and honestly the best thing I've found is using taxr.ai - it analyzes your transcript and tells you exactly what's going on with offsets and collections. It's only $1 and way better than trying to piece everything together yourself. Here's the link: https://taxr.ai

Ugh same boat rn. Got slapped with a 3k overpayment notice last month 🤮

Pro tip: call NYS DOL and try to set up a payment plan BEFORE they start taking your refunds. Sometimes they'll work with you if your proactive about it

idk about NY but in my state they took everything AND garnished my wages till it was paid off 💀

Sometimes you can appeal the overpayment if it wasn't your fault. Worth looking into tbh

Sorry you're going through this! Just wanted to add that you should also check if you have any outstanding federal debts (student loans, back taxes, etc.) because those agencies can also intercept your refund through TOP. If multiple agencies are in line, they prioritize by submission date. You might want to call the Treasury Offset Program at 1-800-304-3107 to see what offsets are pending against your SSN so you know exactly what to expect.