NY unemployment payment stopped due to CTC-EIP - getting overpayment notices
Can anyone tell me if my NY unemployment benefits could be on hold because I received the Child Tax Credit/Economic Impact Payment (CTC-EIP)? I've been claiming every week like normal but suddenly nothing's coming through. Now I'm getting messages about an overpayment! Does the CTC-EIP count against unemployment? I've tried calling the NYSDOL literally 23 times this week and either get disconnected or stuck on hold forever. I'm getting really worried because I need this money for rent next week. Has anyone else had this issue with tax credits affecting their unemployment benefits?
20 comments


Chloe Delgado
The CTC and EIP payments shouldn't directly affect your unemployment benefits. They're completely separate programs and NY unemployment doesn't count them as income that would reduce your benefits. If you're getting overpayment notices, it's likely for a different reason - possibly related to wages not reported, eligibility issues, or system errors. I recommend checking your payment history and messages in your NY.gov account to see if there are any specific explanations for the overpayment determination. Usually they will provide some details about why they believe you were overpaid.
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Liam O'Reilly
•Thanks for replying! I checked my messages and there's something about "unreported income" but I swear I reported everything! The only thing different was getting that tax credit payment. So confusing!!
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Ava Harris
my cousin had the same thing happen last month!!! they said he had an overpayment but he didnt. turns out it was bcuz his employer reported some vacation pay he got after being laid off. did u get any payments from your old job maybe??
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Liam O'Reilly
•Omg that might be it!!! I did get my unused vacation pay about 3 weeks ago but I thought that didn't count against unemployment? Now I'm even more confused 😩
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Chloe Delgado
•Vacation pay typically DOES count as income that needs to be reported to unemployment. In New York, you're required to report any income during the week it was paid, not when it was earned. That's likely what triggered the overpayment notice - the system probably detected income from your employer that wasn't reported on your weekly certification.
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Jacob Lee
You absolutely need to talk to someone at NYSDOL to sort this out. Overpayment issues can get worse if you keep certifying without resolving the underlying problem. You could end up owing even more money back. I was in a similar situation last year and spent TWO WEEKS trying to get through on the phone. Finally I found this service called Claimyr that got me connected to an agent in about 20 minutes. It was seriously worth it because the agent fixed my issue immediately and my payments started again the next week. You can check it out at claimyr.com - they have a video showing how it works here: https://youtu.be/Rdqa1gKtxuE Once you talk to someone, they can tell you exactly what triggered the overpayment and help you appeal it if there's been a mistake.
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Liam O'Reilly
•Thank you!! I'll check out that service because I'm desperate at this point. Did you have to appeal your overpayment or did they fix it right away when you talked to them?
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Jacob Lee
•In my case, they fixed it right away. The agent saw that the system had incorrectly flagged some income that shouldn't have counted against me. She removed the hold and processed my backpay for the weeks I'd missed. The whole call took maybe 15 minutes once I got through. Just make sure you have all your payment details (like your vacation pay stub) ready when you call!
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Emily Thompson
THE SYSTEM IS TOTALLY RIGGED TO MAKE IT IMPOSSIBLE TO GET HELP!!! They DELIBERATELY make the phone lines busy so people give up and don't get the benefits they DESERVE. I had a similar issue in January and it took me filing a complaint with my state senator's office before anyone would help me. THREE MONTHS of no benefits because of their "error" and then they had the NERVE to tell me it was MY fault for not responding to a letter they NEVER SENT ME!!!
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Ava Harris
•yea the system is broken 4 sure. my friend had 2 wait 5 months last year for backpay!!!
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Sophie Hernandez
•While I understand the frustration, there are legitimate reasons why the system flags potential overpayments. If you received vacation pay and didn't report it during your weekly certification, that's actually a legitimate issue that needs to be corrected. The communication problems are real though - they should make it easier to resolve these issues.
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Daniela Rossi
Just wanted to say that this happened to me too back in July! I also thought the child tax credit was causing problems with my unemployment but it turned out I answered one of the weekly certification questions wrong by accident. When I finally got through to someone, they helped me correct it. My payments were on hold for about 3 weeks total before they fixed it.
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Ryan Kim
•omg speaking of certification questions... does anyone else panic every time they have to answer those? I'm always afraid I'll click the wrong thing and mess up my benefits!!!
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Sophie Hernandez
To clarify for everyone: CTC (Child Tax Credit) and EIP (Economic Impact Payments) are NOT considered income for NY unemployment purposes and will not trigger an overpayment on their own. However, here are common things that do trigger overpayments: 1. Unreported wages (including vacation/PTO payouts) 2. Working part-time and not reporting exact hours/earnings 3. Being found retroactively ineligible for certain weeks 4. Answering certification questions incorrectly 5. Failure to participate in required work search activities The vacation pay issue the OP mentioned is almost certainly the culprit. In NY, you must report ALL income for the week it's received, even if it's for work performed in the past. The good news is once you speak with a representative, they can often resolve this quickly if you have documentation.
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Liam O'Reilly
•Thank you for the clear explanation! I'm going to gather my pay stubs and try to get through to someone tomorrow. Wish me luck!
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Ryan Kim
my sister just got an overpayment notice 2 days ago too! might be a system glitch if lots of people are getting them suddenly??
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Chloe Delgado
•While system glitches can happen, it's unlikely that multiple overpayment determinations are errors if they're for different reasons. Each case is typically reviewed individually. Your sister should check her specific reason for overpayment - it's likely different from the vacation pay issue discussed here.
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Liam O'Reilly
UPDATE: I managed to get through to someone at NYSDOL this morning! Used that Claimyr service someone recommended and it worked great. The agent confirmed it was because of my vacation payout ($1,890) that I got after being laid off. I didn't realize I needed to report that as income for that week. They're going to adjust my claim and said I should only owe back about 2 weeks worth of benefits instead of everything. Still sucks but way better than I feared. Thanks everyone for your help!!!
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Jacob Lee
•That's great news! Glad you got it sorted out. At least now you know exactly what happened and can move forward. Did they say how long it will take for your regular payments to resume?
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Liam O'Reilly
•They said I should be able to claim normally next week and payments should process as usual after that. They're just deducting a small amount each week to repay the overpayment. Much better than I expected!
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