Can IRS garnish unemployment benefits from NYS Department of Labor - worried about tax debt
I just started receiving unemployment benefits from NYS Department of Labor after getting laid off last month. I owe the IRS about $8,500 from 2022 taxes that I couldn't pay due to some financial issues. My weekly benefit amount is $435 and I'm really depending on this money to pay rent and bills. Can the IRS take my unemployment payments? I'm getting really anxious about this because I can't afford to lose any of this income right now. Has anyone dealt with IRS garnishment while on unemployment?
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FireflyDreams
Yes unfortunately the IRS can garnish unemployment benefits. Federal tax debt gives them authority to take up to 15% of your weekly unemployment payment. Since you're getting $435 per week, they could potentially take around $65 each week. You should contact the IRS immediately to set up a payment plan before they start garnishing.
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Oliver Weber
•Oh no that's what I was afraid of! Do you know if they notify you before they start taking the money or does it just happen?
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Natasha Kuznetsova
this happened to my brother last year, they took like 60 bucks a week from his unemployment for back taxes. he said it sucked but at least he still got most of his benefits
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Javier Morales
The IRS has to send you notice before they garnish unemployment benefits, usually a Final Notice of Intent to Levy. You typically have 30 days to respond or set up a payment arrangement. If you haven't received this notice yet, contact the IRS proactively. An installment agreement is much better than garnishment because you keep control of the payment amount.
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Oliver Weber
•I think I might have gotten something like that but I was so stressed about losing my job I didn't open all my mail. I need to check everything tonight.
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Emma Anderson
•definitely check your mail! I ignored IRS letters once and it made everything so much worse. they're actually pretty reasonable if you call them before they start garnishing
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Malik Thompson
The whole system is designed to keep people down. You lose your job and then the government takes your unemployment money too. It's ridiculous that they can garnish benefits that are supposed to help people survive while looking for work!
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FireflyDreams
•I understand the frustration but unemployment benefits are still considered income under federal law. The IRS treats them the same as wages for collection purposes.
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Isabella Ferreira
Had a similar issue trying to reach IRS about my garnishment setup. Spent hours on hold with their automated system. Found out about this service called Claimyr at claimyr.com that helps you get through to government agencies faster. They have a demo video at https://youtu.be/qyftW-mnTNI showing how it works. Used it to actually talk to an IRS agent and got my payment plan sorted out in one call instead of waiting weeks.
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Oliver Weber
•That's interesting, I didn't know services like that existed. Did it actually work or is it one of those scammy things?
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Isabella Ferreira
•No it's legit, they don't ask for any personal info upfront. Basically they just help you navigate the phone trees and get to a real person. Worth checking out the demo video to see how it works.
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CosmicVoyager
wait I'm confused, can they take money from regular unemployment or just certain types? I'm on regular UI through NYS Department of Labor not any special program
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FireflyDreams
•They can garnish any unemployment benefits including regular UI from NYS Department of Labor. The type of unemployment program doesn't matter for federal tax garnishment.
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Ravi Kapoor
This reminds me when my unemployment got messed up because of some mix-up with my taxes. NYS Department of Labor held up my benefits for like 3 weeks while they sorted it out with the IRS. Turned out to be some clerical error but it was a nightmare trying to get anyone on the phone to fix it. Finally got through and they straightened it out but those 3 weeks without money were brutal.
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