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Nia Davis

Washington ESD overpayment - if i owe unemployment will i get a refund from taxes?

Got hit with a $2,800 overpayment notice from Washington ESD last month and they want it all back. I already filed my taxes and got a refund before this happened. Now I'm wondering - if I owe money to unemployment, will they take my tax refund next year? Or do I need to pay this back separately? The notice says something about treasury offset but I don't really understand what that means. Has anyone been through this before?

Yes, Washington ESD can intercept your state tax refund if you have an outstanding overpayment. They participate in the Treasury Offset Program, so they can also take your federal refund. You should definitely appeal this if you think it's wrong - you have 30 days from the notice date.

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Crap, I was hoping to use my refund for car repairs next year. How long does the appeal process usually take?

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Appeals can take 6-8 weeks minimum. If you're going to appeal, do it ASAP and keep filing your weekly claims if you're still on unemployment.

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this happened to my brother last year, they took his entire $1,400 refund without warning. The overpayment was from 2022 and he had no idea it was coming

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Did he ever get it sorted out or is he just stuck paying it?

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he's still fighting it but Washington ESD is impossible to get through to on the phone

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I had a similar issue and used Claimyr to actually get through to Washington ESD about my overpayment. They have this service at claimyr.com that helps you reach an agent - there's even a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. I was able to get my case reviewed and the overpayment was reduced by half because of an error in their calculation.

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How much does that service cost? I'm already broke from being unemployed

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It's worth checking out their site for the details. For me, getting through to resolve a $3,000+ overpayment was definitely worth it rather than letting them take all my future refunds.

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Wait, is this some kind of paid service to call unemployment? That seems sketchy to me

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Not sketchy at all - they just help you get through the phone system when the lines are busy. I tried calling for weeks on my own and never got through.

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THE SYSTEM IS RIGGED! They make it impossible to reach anyone to dispute these bogus overpayments then steal your tax refunds. I've been dealing with Washington ESD for 8 months on a $4,200 overpayment that makes NO SENSE.

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Have you tried requesting a hearing? Sometimes that gets more attention than just a regular appeal.

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Yeah I requested a hearing 3 months ago and still waiting. Meanwhile they're threatening to garnish my wages if I get a job!

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For anyone dealing with overpayments, make sure you understand the difference between fraud and non-fraud overpayments. Non-fraud overpayments (like reporting errors or Washington ESD mistakes) don't have the same penalties as fraud overpayments. The treasury offset applies to both types though.

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Mine says 'non-fraud overpayment' on the notice. Does that mean anything different for getting my refund taken?

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Non-fraud is better - no penalties or interest usually. But they can still take your refund. You should definitely appeal if you think you reported everything correctly.

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ugh this is my worst nightmare. I'm currently on unemployment and terrified I'm going to get one of these notices

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Just make sure you're reporting all your work hours correctly on your weekly claims. Most overpayments happen from underreporting work or income.

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I've been super careful about that but the whole system is confusing. Like do I report gross or net income?

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Always report gross income - that's before taxes and deductions. And report it for the week you actually worked, not when you got paid.

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Just want to update - I mentioned Claimyr earlier and wanted to add that I was able to get through to Washington ESD within a few days using their service. The agent explained exactly how my overpayment was calculated and we found the error. Definitely saved me from losing my tax refunds for the next few years.

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That's encouraging! I think I'm going to look into that service. At this point I'm willing to try anything to avoid having my refunds taken.

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I'm skeptical of any service that charges to call government agencies but if it actually works...

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They took my husband's entire $2,100 refund last year without any notice. We didn't even know he had an overpayment until the refund never came. Turns out it was from way back in 2021 and we never got the original notice because we moved.

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That's exactly what happened to my brother! No warning at all

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It's so frustrating because we could have set up a payment plan if we had known. Now we're out the full amount and still owe more.

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Important tip: even if you owe an overpayment, you can sometimes negotiate a payment plan with Washington ESD instead of having your refunds taken. But you have to contact them BEFORE they start the offset process. Once it's in the system, it's much harder to stop.

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How do you set up a payment plan? Is there a specific form or do you just call?

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You need to call and speak to someone in the overpayment unit. That's where services like Claimyr can help since getting through to the right department is nearly impossible otherwise.

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Mei Liu

been there done that, they'll take every refund until it's paid off. took them 3 years to get all my money back. wasn't worth fighting it

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Three years?? How much did you owe?

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Mei Liu

about $5,800 total. my refunds were usually around $1,800-2,000 so it took a while

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One more thing - if you're currently receiving unemployment benefits and you get an overpayment notice, Washington ESD can also reduce your current weekly benefit amount to recover the overpayment. They usually take about 25% of your weekly benefit until it's paid off.

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Wait, they can take money from my current benefits AND my tax refund? That seems like double dipping

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Unfortunately yes, they can use multiple collection methods. That's why appealing is so important if you think the overpayment is wrong.

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I successfully appealed my overpayment last year after getting help reaching the right people at Washington ESD. The key was having all my documentation organized - pay stubs, work logs, and screenshots of what I reported on my weekly claims. Without being able to speak to someone who understood the system, I never would have known what evidence I needed.

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How did you finally get through to someone who could help? Every time I call I get disconnected or told to try again later

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I used a service that helped me navigate their phone system. Once I got through to the right department, they were actually pretty helpful in explaining what went wrong with my claim.

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just to add my 2 cents - even if you owe the money legitimately, you should still try to work with them instead of just letting them take your refunds. I was able to get on a payment plan and it was way better for my budget than losing my whole tax refund at once

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How much were you able to negotiate for monthly payments?

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I owed $3,200 and they let me pay $150/month. Way more manageable than losing my entire refund

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This whole thread is making me paranoid about my unemployment claim. I've been super careful but now I'm worried I made some mistake that's going to come back and bite me

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Don't stress too much - most overpayments are from obvious errors like not reporting work or reporting income wrong. If you've been honest and careful, you're probably fine.

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Thanks, that makes me feel a bit better. I've been keeping detailed records just in case

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For what it's worth, I got an overpayment notice that was completely wrong - they said I didn't report working when I had all the documentation showing I did report it correctly. After fighting it for 6 months I finally got it dismissed. Don't just assume they're right!

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That gives me hope! Did you have to get a lawyer or were you able to handle the appeal yourself?

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I handled it myself but it took forever to get through to anyone who could actually look at my records. The hardest part was just reaching someone at Washington ESD who had authority to fix it.

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Final update from me - just wanted to confirm that my overpayment was officially reduced from $3,400 to $1,200 after I was able to speak with someone at Washington ESD through Claimyr. They found calculation errors in their system. Definitely worth exploring that option if you're stuck in phone limbo like I was.

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That's amazing! You just convinced me to try that service. At this point I've got nothing to lose

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Glad to hear there are actually ways to get through to them. The whole system feels so broken when you can't reach anyone

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Bottom line - yes they will take your tax refund and there's not much you can do to stop it once the process starts. But if you think the overpayment is wrong, you absolutely should appeal it. Even if it takes months, it's better than paying money you don't actually owe

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Thanks everyone for all the advice. I'm definitely going to appeal this and try to get through to someone who can actually help me figure out what happened

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Good luck! Keep us posted on how it goes

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