NYS Department of Labor overpayment notice - when unemployment compensation was repaid by the taxpayer, what happens next?
I got hit with an overpayment notice from NYS Department of Labor saying I owe back $2,800 from benefits I received in 2023. The thing is, I already repaid this money through my tax refund when the IRS took it last year. Now NYS Department of Labor is still showing I owe the full amount and they're threatening collection action. When unemployment compensation was repaid by the taxpayer through tax offset, shouldn't that clear the debt? I'm so confused about why this is still showing as owed. Has anyone dealt with this situation where you paid back overpaid benefits but the system doesn't reflect it?
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Fiona Gallagher
This is a common issue where the IRS tax offset doesn't automatically communicate with NYS Department of Labor systems. You need to contact NYS Department of Labor directly with documentation showing the tax offset payment. They should have a form or process to reconcile overpayments satisfied through federal tax intercept.
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Xan Dae
•Do you know what documentation I need exactly? I have my tax transcript showing the offset but wasn't sure if that's enough.
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Thais Soares
omg this happened to me too!! the computer systems don't talk to each other apparently. took me 3 months to get it sorted out even with proof
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Xan Dae
•Three months?? That's terrifying. Did they stop the collection threats once you provided the documentation?
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Nalani Liu
You'll need your IRS tax account transcript showing the Treasury Offset Program (TOP) entry, plus any correspondence from the Bureau of Fiscal Service about the offset. NYS Department of Labor has a specific process for crediting these payments but it's not automatic. Call their overpayment unit directly rather than the general number.
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Axel Bourke
•Good luck getting through to anyone at NYS Department of Labor though. I've been trying to call for weeks about my own overpayment issue and can never get past the busy signal. It's ridiculous that they can threaten collections but won't answer their phones.
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Aidan Percy
•If you're having trouble reaching NYS Department of Labor agents, I used a service called Claimyr (claimyr.com) that actually got me through to someone within a day. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Was a lifesaver when I needed to resolve my adjudication issue and couldn't get through the regular way.
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Fernanda Marquez
This whole system is broken. They're quick to demand money back but can't even properly track when you've already paid it. Meanwhile regular people get harassed by collection agencies while the state sits on billions in improper payments they'll never recover.
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Norman Fraser
•totally agree, the whole thing is a mess
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