ESD overpayment offset taking my tax refund - anyone fought this successfully?

DO NOT avoid filing taxes!!! That will only make things worse and could lead to penalties. I had this happen last year. My refund was about $3700 and ESD took the whole thing for an overpayment. You need to file an appeal with ESD ASAP against the overpayment determination. You only have limited time to appeal (I think 30 days from when they sent the notice).

yeah this happened to me!!! esd claimed i didnt report 2 weeks of work but i DID!!! they took my whole refund last year and im still fighting it. the system is rigged tbh

You need to act quickly on two fronts: 1. File an appeal with ESD challenging the overpayment determination. You have 30 days from receiving the notice. Gather ALL documentation showing you reported correctly - screenshots of your weekly claim submissions, pay stubs, anything that proves you reported earnings. 2. Request a waiver of overpayment if you can't afford to repay. ESD can waive repayment if you can demonstrate it would cause financial hardship or if the overpayment wasn't your fault. Most importantly, you MUST still file your taxes on time. Not filing will only create more problems. If your refund gets offset before your appeal is resolved, you can potentially get it back if you win the appeal.

I had someting similar happen in 2022. ESD said I got $5,600 in overpayments because they claim I wasnt available for work during some weeks (which was TOTALLY false). They took my tax refund AND sent me to collections. What worked for me was requesting a hearing with the Office of Administrative Hearings. The judge ruled in my favor and I got my money back, but it took almost 8 months! Call ESD directly to request the hearing. You'll receive documents about the hearing date and what evidence to bring.

Have you tried calling ESD directly? Sometimes these overpayment notices are system errors that can be resolved if you actually get to talk to a real person. Good luck getting through though - I spent TWO WEEKS calling every day and could never get past the automated system.

UPDATE: I tried calling ESD today and couldn't get through. After waiting on hold for 2 hours, I got disconnected. I'm going to try that Claimyr service tomorrow. In the meantime, I've started gathering all my documentation and will be filing an appeal online tonight. Still worried about my tax refund, but I'm going to file anyway based on everyone's advice here. Will update when I know more!

One more important thing: When you submit your appeal, ask specifically for a "stay" on collection activities while your appeal is pending. This isn't always granted, but if it is, it could prevent the offset of your tax refund until your case is resolved. Make sure to emphasize financial hardship in your request. Also, if your refund does get offset, keep documentation of EVERYTHING. If you win your appeal, you'll need to request a refund of the offset amount, which is a separate process.

just dont expect anything to happen fast with esd... they took 6 months to even LOOK at my appeal and by then my tax refund was loooong gone. im still waiting for my money back and its been over a year!!! the whole system is broken

I worked for ESD as a claims specialist until 2024, and I can tell you that overpayment issues often happen because of reporting mismatches between what you reported and what your employer reported. Sometimes it's as simple as the dates being off by a day or two. When you call (if you can get through), ask the agent to explain EXACTLY what weeks and amounts they believe you failed to report. Compare that with your records. In about 30% of cases I handled, there was a simple explanation that resolved the issue without a formal appeal.

FINAL UPDATE: I used Claimyr this morning and actually got through to ESD! The agent explained that there was a discrepancy between what I reported and what my employer reported for those 3 weeks. Turns out my employer had reported my hours using the wrong pay period dates. The agent put a temporary hold on collections while they investigate, and I'll be submitting my paystubs and bank statements as evidence. I'm still filing my taxes but feeling much better about the situation. Thanks to everyone for your help and advice!