Can I still file my taxes if I owe NYS Department of Labor unemployment overpayment?
I got hit with a $2,800 overpayment notice from NYS Department of Labor last month saying I need to pay back benefits from 2023. I'm supposed to file my 2024 tax return soon but I'm worried - can I still file my taxes even though I owe this money back to unemployment? Will the IRS or state tax people know about the overpayment? I'm scared they're going to take my refund or something. Has anyone been in this situation before?
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Lilah Brooks
Yes, you can and should still file your taxes! The unemployment overpayment to NYS Department of Labor is separate from your tax filing obligation. However, you might need to report the overpaid amount as income that was incorrectly received. Check if you got a 1099-G form from NYS Department of Labor - it should show the total benefits paid, and you'll need to handle the overpayment portion correctly on your return.
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Owen Jenkins
•I did get a 1099-G but it shows the full amount they paid me, not accounting for the overpayment. Do I report the full amount or subtract what I have to pay back?
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Jackson Carter
same thing happened to me last year, filed my taxes no problem but yeah the 1099-G was confusing
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Kolton Murphy
•Did you have to pay taxes on the overpayment amount too? That seems like getting punished twice!
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Evelyn Rivera
The IRS has specific rules about this. If you received unemployment benefits in 2024 that you later had to repay in the same tax year, you typically can deduct the repayment. But if the overpayment notice is for 2023 benefits and you're filing 2024 taxes, it gets more complicated. You should definitely consult a tax professional or use the IRS guidelines for repaid unemployment benefits. Don't let the NYS Department of Labor overpayment stop you from filing - that could create bigger problems.
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Owen Jenkins
•The overpayment is for 2023 benefits but I just got the notice in 2024. This is so confusing, I might need to get professional help with this.
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Julia Hall
I had a similar issue with getting through to NYS Department of Labor about my overpayment questions. After weeks of busy signals and dropped calls, I found this service called Claimyr at claimyr.com that actually got me connected to a real person at NYS Department of Labor. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Might be worth checking out if you need to clarify anything about your overpayment before filing taxes.
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Arjun Patel
•How much does something like that cost? Seems like we shouldn't have to pay extra just to talk to someone at our own unemployment office
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Julia Hall
•I get the frustration, but after spending hours trying to get through myself it was totally worth it. Sometimes you just need to talk to an actual person to sort these things out properly.
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Jade Lopez
File your taxes for sure! I owed money back to unemployment too and my tax guy said it's totally separate. The worst thing you can do is not file because then you get in trouble with taxes AND unemployment. At least if you file your taxes you're only dealing with one government agency being mad at you lol
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Owen Jenkins
•Thanks, that actually makes me feel better about it. I was imagining all these government agencies talking to each other and making my life miserable.
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