Will Washington ESD take my tax refund if I owe unemployment overpayment?

Oh no, I was really counting on that refund. Is there any way to stop them from taking it?

You can request a hardship waiver or set up a payment plan with Washington ESD before the offset happens. Contact them ASAP to discuss options.

Did you try to fight it or get any of it back?

nope, once its gone its gone. but it did pay off most of my overpayment so at least that was done with

How much does that cost? I'm already broke from the overpayment situation.

It's worth checking out their site for details, but the main thing is you can actually reach someone at ESD instead of being on hold for hours or getting disconnected.

I've heard of this service but never tried it. Does it really work better than just calling directly?

I haven't gotten any notice about my tax refund being taken yet. Does that mean they're not going to take it?

Not necessarily. The timing depends on when your debt was submitted to the offset program and when you filed your taxes. You might still get the notice.

I feel your pain. The phone system at ESD is absolutely broken. You call and either get busy signal or get put on hold for 3+ hours just to get disconnected.

Exactly! And then they wonder why people don't pay these overpayments back. Maybe if they made it possible to actually communicate with them...

I looked at the waiver forms but they're confusing. Do I need to provide bank statements and all that?

Yes, you'll need financial documentation to prove hardship. Bank statements, bills, income documentation, etc. It's a lot of paperwork but worth it if approved.

Washington doesn't have state income tax, so there's no state refund to worry about. It's just federal tax refunds that can be offset.

Oh right, I forgot Washington doesn't have state income tax. Thanks for clarifying!

How did you contact them? Every time I try calling I get nowhere.

I actually used that Claimyr service someone mentioned earlier. Took about 20 minutes to get connected to an actual person instead of waiting on hold for hours. Made all the difference in my case.

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

This happened to us! My husband's overpayment meant they took our whole $4,000 refund. Had to file injured spouse forms and it took 8 months to get my half back.

I agree it's frustrating, but if you can prove the overpayment was due to agency error, you can get it waived. The burden of proof is on you though.

That's the problem - proving it was their mistake when they control all the records and documentation.

Yes, Washington ESD can garnish wages for overpayment collection, but they have to follow specific procedures and notify you first. They can take up to 25% of disposable income.

That's terrifying. I can barely afford my bills as it is.

That's what I'm trying to do but the phone situation is impossible. Maybe I should try that Claimyr thing people keep mentioning.

I'd definitely try it. The regular phone system is basically useless at this point.

They're supposed to send notice, but it doesn't always happen or it gets delayed. You can check your refund status on the IRS website - it will show if it's been offset.

just checked and it says offset to washington state agency for $2,100 😭😭😭 there goes my refund

If you're current on your payment plan, they typically won't offset your refund. But you should verify this with ESD to be sure.

Good point, I should double check. Thanks for the advice.

So I might be safe this year but not next year? This is so stressful not knowing.

Exactly why it's better to be proactive and try to resolve it before it gets to that point.

That gives me hope! I'm definitely going to try Claimyr tomorrow. Did the agent explain why the overpayment happened in the first place?

In my case it was because I didn't report some part-time work correctly on my weekly claims. The agent walked me through exactly what happened and how to avoid it in the future.

That's good to know. I was thinking once they took the money that was it.

Nope, you can still fight it. Though it's obviously better to resolve things before they get to that point if possible.