Can Washington ESD garnish my federal tax return for overpayment?

Automatic? So there's nothing I can do to stop it?

You can request a waiver or set up a payment plan before the offset happens. Contact Washington ESD immediately to discuss your options.

Did you try to fight it or appeal the overpayment decision?

i should have but didnt know i could at the time. learned my lesson the hard way

That sounds too good to be true. Does it actually work?

It worked for me when I needed to discuss my overpayment situation. Saved me hours of busy signals and getting hung up on.

I'm skeptical of services like this but honestly calling ESD is such a nightmare that I might try anything at this point

I got a notice about 6 months ago but thought I had more time to deal with it. Big mistake apparently.

You might still have options. The offset process can take several months to go through the system. Call ESD as soon as possible to discuss hardship waivers or payment arrangements.

If you file jointly, they can offset the entire refund even if only one spouse owes the debt. However, the non-debtor spouse can file an 'injured spouse' form to get their portion back.

That's terrifying. I need to talk to my husband about this immediately.

totally agree, the system is broken and they act like we're criminals for trying to get help during tough times

That's exactly why I mentioned Claimyr earlier - their phone system is designed to keep us from actually talking to anyone who can help

How long do I have to request any of these options?

It varies by option, but generally you want to act within 30 days of receiving the overpayment notice. Some options may still be available after that timeframe.

I tried to set up a payment plan last year and they wanted $200/month which I couldn't afford. Ended up losing my refund anyway.

The Treasury sends a notice before the offset, usually 60 days in advance. But many people miss it or don't understand what it means.

Good to know. I'll be watching my mail more carefully.

Yeah, I'm way over that minimum. Guess I need to get serious about dealing with this.

What kind of documentation did you need to provide?

Bank statements, rent receipts, utility bills, proof of income, basically everything showing your monthly budget and expenses.

How long did the hardship waiver process take?

About 2 months from when I submitted everything to when I got approval. But I had to follow up multiple times.

Not necessarily. Overpayments usually result from reporting errors or changes in eligibility that ESD discovers later through wage audits or other reviews.

Ok that's somewhat reassuring. I was pretty careful about reporting my work hours.

That's absolutely predatory. They make the mistake and then profit from it with interest charges.

Interest rates are set by state law, currently at 1% per month. Payment plans can help prevent interest from accumulating further.

That gives me hope! I'm going to try calling again tomorrow and if I can't get through I'll check out that service.

The payment plan was easy to set up once I actually talked to someone. The hard part is just getting through their phone system.

They can intercept both federal and state tax refunds. Washington doesn't have state income tax, but if you moved from another state and have a refund there, it could potentially be offset too.

good thing im staying in washington then lol

How did you find out they had incorrect wage information?

I requested copies of all the wage records they had on file and compared them to my pay stubs. Found several discrepancies that changed my benefit calculations.

This is good advice. Always verify the information ESD is using for their calculations.

Bank account garnishment too? This is getting scarier by the minute.

Yes, but they have to follow legal procedures and usually try tax offsets first. The key is communicating with them before it gets to that point.

Good to know there are still options even if the worst happens. Thanks for all the helpful information everyone.

Yeah this thread has been really informative. Wish I had found something like this when I was dealing with my overpayment situation.

That's actually really smart advice. I never thought about it that way.

Just be careful not to under-withhold and end up owing taxes. There's a balance to strike.

This whole experience has been a real eye-opener about how the system works. Thanks everyone for sharing your experiences and advice.