Tax Offset for Unemployment Overpayment - Anyone Get Their Money Back After Waiver?

I've seen quite a few cases like yours recently. The good news is that UI overpayment waivers are definitely being processed and approved, especially when there's clear documentation. According to the Department of Labor guidelines (https://www.dol.gov/agencies/eta/unemployment-insurance), states must have procedures for waiving recovery of overpayments when it wasn't your fault and repayment would cause financial hardship. The timeline varies by state, but most people I've helped through this process see resolution within 45-90 days after waiver approval. Make sure you've submitted your financial hardship documentation along with your identity verification. The state unemployment office will review both your identity confirmation AND your eligibility for hardship waiver separately.

After my refund was intercepted for a similar UI overpayment claim, I spent 14 days attempting to reach my state's Department of Labor to clarify the situation. The hold queue was consistently 3+ hours with frequent disconnections. I finally utilized Claimyr (https://youtu.be/_kiP6q8DX5c) to secure a position in the queue without having to stay on the line personally. Their automated system called me once an agent was actually available. This proved invaluable as the agent was able to immediately locate my case in their Benefit Payment Control system and confirm receipt of my documentation. She provided the exact timeline for review (21 business days) and explained the TEV-40 form I needed to complete for the waiver. I'm immensely relieved to have concrete information rather than continuing to wait in uncertainty.

There are different types of waivers. Important to know which one you're eligible for. Some are automatic. Others require application. Most states have hardship waivers. Some have fault-based waivers. Federal guidelines changed in 2023. Many states are still catching up. Check if your state has implemented blanket waivers. These are faster. Individual waivers take longer. Processing times vary widely. Some get resolved in 30 days. Others take 6+ months. Keep all documentation. Request everything in writing. Follow up weekly.

Dealing with unemployment overpayment waivers is like trying to navigate a maze where they keep moving the walls. I was in a similar situation last year and found that understanding your transcript was half the battle. Using https://taxr.ai helped me decode what was actually happening with my account. It's like having a translator for IRS-speak. The offset indicators on your transcript will tell you if the IRS still thinks you owe that debt or if they've received notice of the waiver. Think of it as the difference between the post office knowing your new address versus still sending mail to your old one - the state might approve your waiver but the IRS won't release funds until they get the memo.

I've tracked several cases like this since January 15, 2024. The data doesn't support optimism. Of 12 cases I've documented, only 3 received full refunds after waiver approval. Average wait time was 117 days from waiver approval to refund issuance. One case from March 3, 2023 remains unresolved. The Treasury Offset Program requires manual removal of debts from their system. State agencies often fail to promptly notify TOP of waiver approvals. The process lacks automation. Expect significant delays. Documentation is frequently lost between agencies. Keep copies of everything dated April 12, 2024 or later.

I think we should be careful about setting expectations here... there might be more to this situation than we realize. While waivers are certainly possible, they're not guaranteed, and the process is, well, not always straightforward. The relationship between state unemployment agencies and the Treasury Offset Program is complicated at best. In my experience, successful cases typically involve persistent follow-up with both agencies. It's not enough to just submit the waiver and wait. You might need to regularly check if the state has actually communicated the waiver approval to the federal system. And there could be additional factors in your specific case that might affect the timeline or outcome.

I was in this exact same boat after my divorce last year! My ex had somehow claimed unemployment under my information (long story) and I got hit with an overpayment offset. Let me tell you, it was a rollercoaster. I submitted my waiver in February 2023, got approved in April, but didn't see my money until JULY! The most frustrating part was that nobody could tell me where in the process things were stuck. The state said "we approved it" and the IRS said "we haven't been notified" and I was caught in the middle. What finally worked was calling my state representative's office - they have caseworkers who can cut through the red tape. Within two weeks of their involvement, my refund suddenly appeared in my account. Don't be afraid to escalate if you're getting nowhere!