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DeShawn Washington

How to stop Washington ESD from taking my tax return for overpayment

I just got a letter from Washington ESD saying they're going to intercept my tax return for an overpayment from 2023. The amount is $2,800 and I honestly don't understand how this happened. I reported all my work correctly when I was filing my weekly claims. Is there any way to stop them from taking my refund? I really need that money for bills and my car payment. Has anyone dealt with this before?

You can request a waiver if you believe the overpayment wasn't your fault or if paying it back would cause financial hardship. Washington ESD has specific forms for this - you need to act fast though because there are deadlines.

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Do you know what form I need? The letter they sent doesn't really explain the process clearly.

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It's usually form ESD 1301 for overpayment waivers. You can find it on their website or request it by phone.

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Same thing happened to my brother last year. He tried calling Washington ESD for weeks but could never get through. The phone lines are always busy and when you do get connected they hang up on you after being on hold forever.

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That's what I'm worried about. I've been trying to call but can't get anyone on the phone.

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Have you tried using Claimyr? It's a service that helps you get through to Washington ESD agents. My coworker used it when she had an overpayment issue and actually got to talk to someone. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works.

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Never heard of that but I'll check it out. At this point I'll try anything to get through to someone.

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You need to appeal the overpayment determination first before they can take your tax return. Did you file an appeal within 30 days of getting the original overpayment notice?

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I think I missed that deadline. The first letter came in November and I thought it was just informational. I didn't realize I had to appeal it.

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You might be able to file a late appeal if you have good cause for missing the deadline. Financial hardship or not understanding the process could qualify.

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The Washington ESD overpayment system is ridiculous. They make mistakes all the time but expect us to pay for THEIR errors. I'm still fighting an overpayment from 2022 that makes no sense whatsoever.

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I hear you! They never explain how they calculated the overpayment either. It's like they just pick random numbers.

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Actually, you can request a detailed breakdown of how they calculated the overpayment. It's your right to understand the determination.

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If you're facing financial hardship, definitely apply for the waiver. I got mine approved last year because paying back $3200 would have put me behind on rent and utilities. You have to show proof of your expenses though.

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What kind of proof did you need to provide? I'm definitely struggling financially right now.

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Bank statements, bills, rent receipts, anything showing your monthly expenses vs income. The more documentation the better.

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I used claimyr.com last month when I needed to talk to Washington ESD about my claim status. Got through in like 20 minutes instead of calling for days. Might be worth trying for your overpayment situation.

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How much does that cost? I'm already tight on money.

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It's way cheaper than losing your whole tax refund. Plus they have different options depending on what you need help with.

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Check your original claim carefully. Sometimes they count income incorrectly or apply it to the wrong weeks. I found an error where they counted my vacation payout as regular wages for unemployment purposes.

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That's a good point. I did get some vacation pay when I was laid off. Maybe that's part of the issue?

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Exactly! Vacation pay is supposed to be allocated differently than regular wages. You definitely need to review those calculations.

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whatever u do dont ignore it completely. my friend did that and they took his whole refund plus penalties. at least try to work something out with them

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Yeah I'm definitely not ignoring it. Just trying to figure out my options before I make any decisions.

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Here's what you need to do step by step: 1) Request a detailed breakdown of the overpayment calculation, 2) File an appeal if you believe it's incorrect, 3) Apply for a waiver if you can't afford to pay it back, 4) Set up a payment plan if the waiver is denied. Don't let them just take your tax return without fighting it.

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This is really helpful, thank you. Can I do multiple things at once or do I have to pick one approach?

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You can often do both - appeal the determination AND apply for a waiver at the same time. Cover all your bases.

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I'm dealing with the same thing right now but for $4100. Been trying to get through to Washington ESD for two months with no luck. The whole system is broken.

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Seriously try Claimyr - I keep recommending it because it actually works. Better than spending weeks trying to get through on your own.

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I might have to at this point. The regular phone number is useless.

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Make sure you understand WHY they say you were overpaid. Was it because you worked while claiming? Didn't report income correctly? Or was it their mistake in processing? The reason affects your options.

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The letter just says 'improper payment' but doesn't give details. That's part of why I'm so confused.

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Then you definitely need to request that detailed breakdown. You can't fight something you don't understand.

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Time is critical here. Once they submit the tax offset request to the IRS, it's much harder to stop. You need to act within the next few weeks if you got that letter recently.

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The letter is dated two weeks ago. How much time do I realistically have?

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Usually 30-60 days from the notice date before they submit it to the IRS. Don't wait though - start the process now.

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Also check if you qualify for injured spouse relief if you're married and filing jointly. That can protect part of the refund even if Washington ESD takes some of it.

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I'm single so that doesn't apply to me, but good to know for others reading this.

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Document EVERYTHING. Keep copies of all forms you submit, take notes of any phone calls, save emails. If this goes to a hearing you'll need that paper trail.

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Good advice. I'll start keeping better records from now on.

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honestly the whole washington esd overpayment thing feels like a scam sometimes. they make it so complicated to fight and most people just give up

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That's probably the point. They count on people not understanding their rights or not having the energy to fight it.

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Update: I just helped my neighbor use Claimyr to reach Washington ESD about her overpayment issue. She got through to an actual person who explained the calculation and helped her set up a payment plan. Way better than trying to navigate this alone.

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That's encouraging. I think I'm going to try that service since nothing else seems to be working.

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Don't forget you can also contact your state representative's office. They sometimes help constituents with Washington ESD issues when the normal channels aren't working.

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I didn't think of that option. Might be worth a try if everything else fails.

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Whatever you decide, don't let them intimidate you into just accepting it. You have rights and options. Fight for yourself because nobody else will.

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Thanks everyone for all the advice. I feel like I have a plan now instead of just panicking.

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Good luck! Remember to act quickly and keep pushing until you get answers. Don't let them just take your refund without explanation.

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Keep us updated on how it goes! Your experience might help someone else in the same situation.

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Will do. Hopefully I'll have good news to share in a few weeks.

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One last thing - if you end up having to pay it back, ask about setting up a payment plan instead of them taking the whole refund at once. They usually work with you on that.

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That's definitely better than losing it all at once. I'll keep that in mind as a backup option.

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