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PA UC overpayment from 2 years ago - will they take my tax refund?

I just found out I have an overpayment from my pandemic unemployment (PUA) from about 2 years ago. I never received any letters about this until now, and I'm completely freaking out! The notice says I owe $4,250 back to the state. I don't have that kind of money right now, and I'm worried they're going to take my tax refund this year. Does anyone know how to set up a payment plan for this? Is there any way to appeal after so much time has passed? Or am I definitely going to lose my tax refund? Any help would be really appreciated because I was counting on that money for some car repairs.

Rudy Cenizo

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Yes, they can and likely will intercept your state and federal tax refunds for UC overpayments. Pennsylvania participates in the Treasury Offset Program (TOP) which allows them to take your federal refund for UC debts. For state tax refunds, they have their own process. However, you do have several options: 1. Set up a repayment plan by calling the Overpayment Collections Unit at 866-403-6163 2. File for a financial hardship waiver if you can demonstrate paying it back would cause significant financial hardship 3. Request an appeal if you believe the overpayment determination was incorrect (though there are time limits on appeals, usually 15 days from notice date) I recommend calling them ASAP to discuss your options before tax season starts in earnest.

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Harmony Love

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Thank you for this info! Do you know if they'll take my ENTIRE tax refund or just a portion of it? I was expecting about $3,200 back this year and really need at least some of that money.

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Natalie Khan

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THEY TOOK MY WHOLE REFUND LAST YEAR!! I had a similar situation with PUA overpayment from 2021. No warning at all and they intercepted everything - both state and federal. It's completely ridiculous how they just take peoples money without giving you time to make arrangements. I tried calling for WEEKS and couldn't get through to anyone until AFTER they already took my refund. The system is designed to make it impossible to actually resolve anything!!!!

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Daryl Bright

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While they can take your full refund, it's not always the case. If you set up a repayment plan BEFORE they process the interception, sometimes they'll honor that instead. Also, if you have a joint tax return with a spouse, your spouse can file an injured spouse form (Form 8379) to protect their portion of the refund.

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Sienna Gomez

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my cousin had this happen and they took his whole refund but he said after they still said he owed money even tho the refund was more than what he owed? make sure u keep all ur paperwork

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Harmony Love

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Oh no, that's awful! Thanks for the warning - I'll definitely keep everything documented. I wonder if they added penalties or interest that made the amount higher than what he originally owed?

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Have you tried calling PA UC about this? I had a similar issue and spent 3 weeks trying to get through to someone. Always busy signal or disconnected after waiting. I finally used Claimyr (claimyr.com) to get connected to a PA UC agent. They have a service that gets you through to unemployment - you can see how it works in their video demo: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2. I was able to set up a payment plan and they didn't take my full refund. The agent I spoke with was actually helpful once I finally got through.

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Abigail bergen

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is that service legit? seems sketchy to me...has anyone else used it?

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Ahooker-Equator

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I've used it twice and got through both times. First time I was skeptical too but it worked when I had been trying for days on my own. Worth it when you're desperate to talk to someone at UC.

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Daryl Bright

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I work with financial counseling clients who deal with these issues regularly. Here's what you need to know about PA UC overpayments: - Yes, they can intercept both state and federal tax refunds through the Treasury Offset Program - You have 3 primary options: repayment plan, appeal, or waiver request - For repayment plans, they typically accept monthly payments as low as $50 depending on your financial situation - For appeals, you generally need to demonstrate that you didn't receive the benefit funds, the calculation was incorrect, or you weren't properly notified - For waivers, you need to show financial hardship and that the overpayment wasn't due to fraud Most importantly, you need to take action BEFORE they process the tax intercept. Once that happens, it's much harder to get any of those funds back.

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Harmony Love

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This is super helpful! Do you know how long the appeal process typically takes? If I filed one now, would it be resolved before tax season?

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Daryl Bright

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Unfortunately, appeals can take anywhere from 4-12 weeks currently. With tax season approaching, it's unlikely an appeal would be resolved before refunds start processing. That's why setting up a repayment plan might be your best immediate option to prevent the full intercept.

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Ahooker-Equator

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I went thru this last yr. wat I did was file a waiver cause I had hardship. U need 2 get form UC-1766W from their website & fill it out completely. Include all ur bills, income, etc. I sent mine in & got approved after about 2 months. They didn't take my refund after that. But u need 2 do it ASAP b4 tax time!!!! Good luck!!

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Harmony Love

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Thank you! I'll download that form tonight and get it filled out right away. Did you send any supporting documents with your waiver request? Like copies of bills or bank statements?

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Ahooker-Equator

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yes send EVERYTHING u can 2 prove hardship. I sent copies of all my bills, bank statements showing low balance, letter from my landlord about rent increase, medical bills, everything! The more proof the better ur chances.

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Abigail bergen

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why dont they have to pay US interest when they take 2 years to tell us about overpayments but we have to pay them interest right away?? system is rigged against regular people trying to survive

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Natalie Khan

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EXACTLY!!! They drag their feet for YEARS and then expect immediate repayment with interest and penalties. And good luck getting anyone on the phone to explain anything! The whole system is designed to take advantage of people who can't afford lawyers to fight back.

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Rudy Cenizo

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One thing I haven't seen mentioned yet - check if you qualify for an overpayment waiver specifically for PUA. The Department of L&I announced a few months ago that they would be waiving certain non-fraud PUA overpayments, especially those resulting from documentation issues or misunderstandings during the pandemic. You may qualify depending on when you received benefits and why they determined there was an overpayment. Worth looking into in addition to the other options.

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Harmony Love

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Oh wow, I hadn't heard about this! Thank you so much - I'll definitely look into this option too. Mine wasn't due to fraud - I think there was confusion about which weeks I was eligible for. This gives me some hope!

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Sienna Gomez

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my brother had his wage garnished for unemployment overpayment so watch out for that too if u have a job

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Daryl Bright

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That's correct. If tax refund interception doesn't cover the full amount, PA UC can pursue wage garnishment, but they typically only do this after other collection attempts have failed. They must provide notice before beginning garnishment, and there are limits to how much they can take from each paycheck.

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