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PA UC non-fraud overpayment - will they take my tax refund?

Just got hit with a non-fraud overpayment notice from PA UC for $4,750. They're giving me the option to start payments of $100 on March 18th, 2025. The letter says I have to either pay or appeal within 15 days. I already tried applying for a waiver but they DENIED it literally an hour after I submitted it!? Said I didn't provide enough documentation but didn't specify what was missing. What I really need to know - will they take my state/federal tax refunds for a non-fraud overpayment? Someone at the career center told me they only garnish future UC benefits for non-fraud cases, not tax refunds, but I'm getting different info online. Anyone been through this? Really stressed about this as I was counting on that refund money for car repairs.

they absolutely WILL take your refund. happened to me last year with a $2300 overpayment. they say its 'non-fraud' but they still intercept tax refunds!

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Andre Laurent

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Seriously? That's not what they told me when I called... though I was on hold for 2 hours and the person seemed rushed. Did they take state and federal or just state?

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I'm dealing with something similar. For non-fraud overpayments in PA, they CAN take your state tax refund but federal tax refunds are typically only intercepted for fraud cases or if the debt gets referred to Treasury Offset Program. You should definitely appeal the waiver denial though. It sounds like they didn't even properly review your documents. When you reapply for the waiver, make sure to include ALL financial documents - bank statements, bills, rent/mortgage, proof of any hardship, etc. The more documentation, the better chance of approval.

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Mei Wong

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This is correct. Non-fraud overpayments can result in state tax refund interception but not federal (unless it's been outstanding for a very long time and gets referred to TOP). I've helped several clients through this process. Make sure when you appeal the waiver denial that you clearly demonstrate financial hardship - they need to see that repayment would cause you significant difficulty.

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Liam Fitzgerald

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omg im so worried about this too!!!! i have a $3k overpayment and i need my tax refund for my kids school stuff!! did u try calling them?? i cant get through to ANYONE its so frustrating!!!

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PixelWarrior

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After struggling with constant busy signals and disconnects for 3 days, I finally got through to PA UC by using Claimyr. It's a service that basically waits on hold for you and calls when an agent is ready. Costs some money but saved me hours of frustration. Their website (claimyr.com) has a video demo showing how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 The agent I spoke with was actually helpful and explained all my options for my overpayment.

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Amara Adebayo

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Did you check if you might qualify for a financial hardship waiver? My sister got one last year when she had a $3200 overpayment. You have to prove you really can't afford to repay it though.

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Andre Laurent

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Yes, I applied for the hardship waiver and they denied it super fast - like within an hour. I'm wondering if someone just auto-rejected it without actually looking at my docs. I included my bank statements and bills but maybe I need more?

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Giovanni Rossi

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You should check if you can request a hearing about the overpayment determination itself, not just the waiver. sometimes they calculate things wrong. i had a non-fraud overpayment reduced by almost $2000 after we showed they counted some weeks wrong. and yeah, in PA they CAN take your state tax refund for non-fraud. just happened to my cousin.

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THIS!!!! Fight the determination itself!!! The UC system is SO broken they make mistakes ALL THE TIME!!!! I had an "overpayment" that turned out to be THEIR ERROR!!!!

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Mei Wong

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Here's what you need to know about PA non-fraud overpayments: 1. They CAN intercept your state tax refund, but federal refunds are typically only intercepted for fraud cases or very old debts 2. They CAN reduce future UC benefits by up to 1/3 if you claim again 3. For the waiver denial, you need to appeal within 15 days of receiving the determination letter 4. When submitting documentation for a financial hardship waiver, include: - Last 3 months of bank statements - Rent/mortgage statements - Utility bills - Medical expenses - Childcare costs - Any other essential expenses - Documentation of all income sources The fact that they denied it so quickly suggests they may not have thoroughly reviewed your case. I would definitely appeal.

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Andre Laurent

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This is incredibly helpful, thank you. I'm definitely going to appeal and include ALL of this documentation. Do you know if I can request a payment plan that's lower than what they're offering? $100/month is really tough for me right now.

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My neighbors cousin had a similar thing happen and he said the whole process was a nightmare but eventually he got on a payment plan for like $25 a month and they didnt take his tax refund but I think it might be different for everybody depending on your situation lol

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To answer your question about a lower payment plan - yes, you can request a lower monthly payment than what they initially offer. Call and explain your financial situation. They can go as low as $25/month in some cases, but you'll need to show why the $100 is a hardship. As for the waiver, when you appeal, make sure to specifically request a telephone hearing. In my experience, you have a much better chance when you can actually speak to a referee and explain your situation versus just submitting paperwork.

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Andre Laurent

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Thank you! I'll definitely request the telephone hearing. With everything documented properly and being able to explain my situation directly, hopefully I'll have a better chance at getting the waiver approved.

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Amara Adebayo

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Whatever you do dont ignore it!!! My brother ignored his overpayment notices and they eventually added penalty interest and then sent it to collections!

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Andre Laurent

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Thanks everyone for the helpful advice. I'm going to: 1) Appeal the waiver denial and request a telephone hearing 2) Include ALL the financial documents suggested 3) Request a lower payment plan if the waiver doesn't work out 4) Look into whether the overpayment determination itself might be incorrect I'll update this thread after my appeal to let you know how it goes. Fingers crossed I can get this resolved before tax refund time!

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Mei Wong

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Good plan. And remember, even if they deny your appeal, you can request a payment plan that fits your budget. The important thing is to stay engaged with the process and respond to all notices within the specified timeframes.

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