Will ESD collect pandemic overpayments from my tax refund?

Yes, they can and will take your tax refund. ESD partners with the Department of Revenue for collections on overpayments. I had a $2,100 overpayment from 2022 (not even pandemic related) and they took my entire state refund this year without warning. You should immediately file an appeal if you disagree with their determination - you only have 30 days from the date on that letter! You can also try calling them directly to set up a payment plan before it gets to collections, but good luck actually reaching anyone.

There actually IS a pandemic overpayment waiver program specifically for PUA/PEUC benefits from that time period. I went through this last year. You need to fill out the "Pandemic Benefits Overpayment Waiver Request" form on the ESD website. They're forgiving a lot of these because there was so much confusion during COVID. Make sure you explain that you applied in good faith and believed you qualified at the time. Even if they don't forgive the whole amount, they might reduce it significantly. Don't ignore this though! Definitely appeal within the 30-day window regardless.

I'VE BEEN FIGHTING WITH ESD FOR 8 MONTHS about a similar overpayment notice!!! They'll ABSOLUTELY take your tax refund and even GARNISH YOUR WAGES if you don't deal with this. The appeals process is a COMPLETE JOKE - they ALWAYS side with ESD no matter what proof you provide. And good luck getting anyone on the phone to explain why you supposedly didn't qualify in the first place!!! The whole system is designed to PUNISH people who needed help during a GLOBAL CRISIS. It's absolutely CRIMINAL what they're doing to regular people!!!!!

If you're having trouble getting answers from ESD about your pandemic overpayment, I highly recommend using Claimyr to get through to an actual ESD agent. I was in a similar situation with a $4,200 overpayment notice, and I spent weeks trying to get someone on the phone with no luck. Claimyr got me connected to an agent within 30 minutes who explained exactly why I got the overpayment and what my options were for appealing. Saved me so much stress! They have a video demo at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 that shows how it works. Definitely worth it for getting immediate answers about your specific situation.

my cousin had this happen and he just ignored it lol. said they sent letters for a while then stopped. but idk if that means it went away or if hes just gonna get a surprise when they take his tax refund this year haha. personally i wouldnt risk it but thought id share his experience

Important note: If you request a waiver or file an appeal, make sure you continue responding to ANY communication from ESD or OAH (Office of Administrative Hearings). Missing a hearing or failing to provide requested documentation automatically means you lose the appeal. Also, depending on why they say you were overpaid, different rules apply. If they're claiming fraud, that's harder to get waived than if they're just saying you were retroactively ineligible for technical reasons.

same thing happened to me last month! "failure to report earnings" but i had zero income during pandemic! turns out they had me confused with someone with similar name who was working at amazon. took 3 appeals but finally got it fixed. check your quarterly wage reports in your eServices account - might show incorrect employer info if thats whats happening. def appeal this!

To address your tax refund question specifically: Yes, both federal and state tax refunds can be intercepted for ESD overpayments. For federal refunds, it goes through the Treasury Offset Program (TOP). For state refunds, it's handled directly by Washington Department of Revenue. However, if you file an appeal or waiver request, they may place a temporary hold on collection activities including tax intercepts. Make sure you request this specifically when you file your appeal.