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New Member
posted Jun 4, 2019 2:26:13 PM

Can unemployment take money from state and federal refund or they have to choose

Just curious if unemployment can take both my state and federal refund or they have to choose one

0 16 26791
16 Replies
New Member
Jun 4, 2019 2:26:14 PM

Yes, they can take both state and federal refunds.  State Unemployment Insurance Compensation debts are now eligible for referral to Treasury Offset Program

The Department of Treasury's Bureau of the Fiscal Service (BFS) issues IRS tax refunds and Congress authorizes BFS to conduct the Treasury Offset Program (TOP). Through the TOP program, BFS may reduce your refund (overpayment) and offset it to pay:

  • Past-due child support;
  • Federal agency non-tax debts;
  • State income tax obligations; or
  • Certain unemployment compensation debts owed to a state (generally, these are debts for (1) compensation paid due to fraud, or (2) contributions owing to a state fund that weren't paid).

You can contact the agency with which you have a debt to determine if your debt was submitted for a tax refund offset. You may call BFS's TOP call center at the number below for an agency address and phone number. If your debt meets submission criteria for offset, BFS will reduce your refund as needed to pay off the debt you owe to the agency. Any portion of your remaining refund after offset is issued in a check or direct deposited as originally requested on the return.

BFS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will notify the IRS of the amount taken from your refund once your refund date has passed. You should contact the agency shown on the notice if you believe you don't owe the debt or if you're disputing the amount taken from your refund. If you don't receive a notice:

  • Contact the BFS's TOP call center at 800-304-3107 or TDD 866-297-0517, Monday through Friday 7:30 a.m. to 5 p.m. CST.
  • Contact the IRS only if your original refund amount shown on the BFS offset notice differs from the refund amount shown on your tax return.

Click on the link below to find out if your state participates in the offset program:

https://www.fiscal.treasury.gov/fsservices/gov/debtColl/dms/top/uicDebt/debt_top_uic.htm#uicmap

New Member
Jun 4, 2019 2:26:15 PM

Can unemployment take both refunds from different jobs

New Member
Jun 4, 2019 2:26:17 PM

Can .They offset my state due to overpayment of unemployment

New Member
Feb 26, 2020 10:29:57 PM

Can they take my state & federal

Intuit Alumni
Feb 27, 2020 8:05:58 AM

Please see the more detailed post above by Patrice. The answer is yes they can take both. 

@KyqianaHearn 

 

 

 

 

 

 

Edited 2/27/20

New Member
Mar 30, 2020 7:08:02 AM

I found out Connecticut took my Federal Taxes for overpayment..I live in Massachusetts..but still the check haven't been distributed yet. So why. 

Intuit Alumni
Mar 30, 2020 8:07:34 AM

TurboTax does not receive information regarding returns once they have been accepted but you can track the status of your state return or contact MA directly by following the directions in the following TurboTax FAQ:

How do I track my Massachusetts tax refund?

New Member
Feb 5, 2022 8:49:09 AM

I dont kno what state you are in but MA unemployment just posted a notice that they will NOT be collecting any tax refunds for overpaid unemployment this tax season. So basically if you owe unemployment any $ (I believe it has to be a no fault overpayment, not if fraud was involved) they will not be intercepting state or fed. taxes to collect it this year.  Good luck

New Member
Mar 1, 2022 4:44:40 AM

Hey

 

My state taxes was collected due to unemployment for overpayment. I wasn't even working due to my bus driving job since schools closed due Covid. They racked up on me $ 20,000 for i guess the 600.00 extra that government included. I being trying reach Unemployment and wrote Appeals. 

New Member
Jan 8, 2024 1:58:48 PM

If o  unemployment  can take my taxes  money or or not 

New Member
Jan 8, 2024 2:00:54 PM

 Just  Federal tax return Can I check that we're o unemployment  office 

Expert Alumni
Jan 8, 2024 2:14:03 PM

I'm not sure I understand your complete question. If you owe back unemployment, both your Federal and State refunds can be offset to pay the debt.

 

Refund Offset  

I.R.C. § 6402(a) authorizes the IRS to credit an overpayment, including any interest generated on the overpayment, against certain liabilities of a taxpayer before refunding any portion of the overpayment. 

The debts that may be offset under section 6402 include: 

■ any unpaid federal tax liability;  

■ any unpaid federal non-tax debt;  

■ past-due child support;  

■ past-due, legally enforceable state income tax obligations; and  

unemployment compensation debts.  

New Member
Jan 8, 2024 5:45:10 PM

Thank you. They just took state return (which is what I expected) & it wasn't much. 

Returning Member
Feb 18, 2025 10:29:58 AM

If it's my wife's debt can they take my refund If we file separate?

Level 15
Feb 18, 2025 10:31:29 AM


@dresslerk wrote:

If it's my wife's debt can they take my refund If we file separate?


If the debt was hers alone then your tax refund cannot be seized if you file as Married Filing Separately.  

Expert Alumni
Feb 18, 2025 10:51:10 AM

No, the IRS will not take your refund if you file as Married Filing Separately.

 

However, it might be more advantageous for you to file jointly, and include an Injured Spouse allocation.  That way, they will determine which income belongs to who, and only take what she owes from her portion of your joint Refund.

 

Though an Injured Spouse return takes longer to process, it might be worth it if it significantly increases your Refund.  Try it both ways in TurboTax to see. 

 

Here's How to File Form 8379, Injured Spouse Allocation.

 

@dresslerk