How to stop NYS Department of Labor from taking tax return for overpayment
NYS Department of Labor is about to intercept my tax refund for an overpayment from 2023. I got a notice saying they're working with the state tax department to collect $2,800 they claim I owe. The thing is, I think there's an error in their calculation because I reported all my part-time work correctly when I was collecting benefits. Is there any way to stop this tax offset before it happens? I really need that refund to catch up on bills. Has anyone successfully challenged this or gotten the offset stopped?
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QuantumQuasar
You need to file an appeal immediately if you believe the overpayment determination is wrong. The appeal process can potentially stop the tax offset while your case is being reviewed. You'll need to request a waiver hearing and provide documentation showing you reported your earnings correctly. Contact NYS Department of Labor's overpayment unit and request all records of your weekly certifications from 2023.
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Andre Dupont
•Thank you! Do you know how long I have to file the appeal? The notice was dated three weeks ago but I just received it yesterday.
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Zoe Papanikolaou
I went through this exact situation last year. The key is proving you reported everything correctly on your weekly claims. Get copies of your pay stubs from that period and compare them to what you certified each week. If there's a discrepancy between what NYS Department of Labor says you earned vs what you actually reported, that's your evidence. Also check if they're counting gross vs net wages - that's a common mistake they make.
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Andre Dupont
•That's a great point about gross vs net! I was always unsure which number to report when I was working part-time.
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Jamal Wilson
•You're supposed to report gross earnings before taxes and deductions. A lot of people get confused about this.
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Mei Lin
ugh the same thing happened to my cousin last year and she could never get through to anyone at NYS Department of Labor to even discuss it. she tried calling for weeks but the lines are always busy or they hang up on you
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Liam Fitzgerald
•I had trouble reaching NYS Department of Labor agents too until I found this service called Claimyr at claimyr.com. They actually get you through to a real person instead of dealing with the busy signals and disconnects. There's a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. It was a lifesaver when I needed to resolve my adjudication issue.
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Amara Nnamani
Wait, can they really just take your tax refund without warning?? I thought they had to go through some kind of legal process first. This is making me nervous because I got an overpayment notice too but it was only for like $400.
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QuantumQuasar
•Yes, they can offset tax refunds for unemployment overpayments. It's called Treasury Offset Program (TOP). They're required to send notice before doing it, but the timeframe is usually pretty short - often just 30-60 days.
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Giovanni Mancini
been there! you should also look into requesting a hardship waiver if the overpayment wasn't your fault. NYS Department of Labor has provisions for waiving overpayments in certain circumstances especially if it would cause financial hardship
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Andre Dupont
•What kind of documentation do I need for a hardship waiver? I'm definitely struggling financially right now.
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