Can the state take my federal taxes for unemployment overpayment

Asked almost 3 years ago - Centralia, IL

i was overpaid benifits from unemployment, however i just got a job to arrange payments will they still take my taxes

Attorney answers (3)

  1. Christopher Michael Larson

    Contributor Level 19


    Lawyers agree

    Answered . The Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay:

    -Past-due child support
    -Federal agency non-tax debts
    -State income tax obligations, or
    -Certain unemployment compensation debts owed a state. (Generally these are debts for compensation that was paid due to fraud or for contributions due to a state fund that were not paid due to fraud)

    Hope this helps a little. But this simple answer without knowing more facts is, yes it is possible for them to take a federal refund to offset state unemployment benefits.

    Christopher Larson

  2. Curtis Lamar Harrington Jr

    Contributor Level 20


    Lawyers agree

    Answered . You said "to arrange payments" but have you entered into a formal agreement?

    If you have, or if you will do so, check as to whether a formal agreement triggers a stop collect in Illinois.(especially as to the Federal return).

    In terms of momentum, and if you have not made a blocking agreement or if you only just made one, the taking may occur if the mechanism is already set in motion.

    Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal... more
  3. Henry Daniel Lively

    Contributor Level 20


    Lawyers agree

    Answered . Until the amount is paid back they will take your refund.

    Any individual seeking legal advice for their own situation should retain their own legal counsel as this response... more

Related Topics

Unemployment compensation after job loss

Unemployment compensation is money you get from the state if you lose your job and it's not your fault. It helps cover your expenses while you look for a job.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.


Ask now

18,744 answers this week

2,444 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

18,744 answers this week

2,444 attorneys answering