Skip to main content

Your overpayment of unemployment insurance benefits is being withheld from your tax refund ,what's that mean ?

Madison, WI |

I have received this letter in the mail today!

And what should i do ?

Attorney Answers 4

Posted

The State has determined they overpaid your unemployment benefits. They are claiming an offset against your state tax refund.

You have asked us to state an opinion based upon stated facts. You have not provided us with any documents, pictures, witness statements or other admissible evidence. The opinions stated are based upon general principles of law unless otherwise stated, which may or may not be applicable in your jurisdiction. Controlling law is also subject to change or reversal at any time. Any such changes may be retroactive and could significantly modify the statements and opinions expressed herein. Similarly, any change in the facts and assumptions upon which this opinion is based could modify the conclusions. We opine only as to matters expressly set forth, no opinions should be inferred as to other matters or to treatment of matters not specifically addressed. This opinion represents our best judgment as to the probable outcome of the issues discussed and is not binding on the courts or upon your adversaries. We can give no assurance that an adversary would not challenge our conclusions and prevail in the courts in a manner to cause adverse consequences. With respect to some of the matters discussed in the opinion, existing legal precedent may provide very little legal guidance. Although the opinions and views expressed are based on our best interpretations of existing law and what we believe a court would probably conclude if presented with the applicable issues, we can give no assurance that our interpretations would be followed if the issues became the subject of judicial or administrative proceedings. Realization of certain benefits described is subject to the risk that a tenant may challenge the treatment and that a court may sustain the challenge. Because you may bear the burden of proof required to establish a fact, the opinions expressed assume the you will undertake the effort and expense to present fully the case in support of any matter that you have asserted and an opponent might challenge. None of the advice provided here may be used to avoid tax liability, interest or penalties. If you want that level of assurance you will need to allow us to perform the full opportunity to explore the facts and law applicable to your specific circumstances. I provide answers here to allow people to see the style of communication and type of analysis applied to factual statements.

Mark as helpful

4 lawyers agree

Posted

It means just what it says. If you got UC after you returned to work or that you were not supposed to get, instead of having to return it, it will just be deducted from your tax refund and will count as income, meaning more taxes so smaller refund. The IRS will do the math.

This answer is not intended to be legal advice in a lawyer/client relationship. Misunderstanding of the answer or use of the answer for any illegal purpose is not the responsibility of the writer. The answer to any question in the Avvo website is constrained by the limited content of the question, an incomplete description of the facts underlying the question or a wrongful motivation for the question.

Mark as helpful

4 lawyers agree

Posted

It means just what it says. If you got UC after you returned to work or that you were not supposed to get, instead of having to return it, it will just be deducted from your tax refund and will count as income, meaning more taxes so smaller refund. The IRS will do the math.

This answer is not intended to be legal advice in a lawyer/client relationship. Misunderstanding of the answer or use of the answer for any illegal purpose is not the responsibility of the writer. The answer to any question in the Avvo website is constrained by the limited content of the question, an incomplete description of the facts underlying the question or a wrongful motivation for the question.

Mark as helpful

2 lawyers agree

Posted

Previous answers considered, most people, basically, do nothing. Given your facts (as I read) that's probably a safe option, because the state and IRS take care of collection.

Attorney J Anton Collins is a featured Criminal Tax Defense Attorney on Avvo. You may contact Attorney Collins directly at jcollins@jonescollins.com, or 866-340-5055, for more specific answers. This forum is merely for open, public discussion. Discussions in this open, online forum are not intended to create an attorney-client relationship. IRS CIRCULAR 230 DISCLOSURE NOTICE: IRS Circular 230 regulates written communications about federal tax matters between tax advisors and their clients. To the extent the preceding correspondence and/or any attachment is a written tax advice communication, it is not a full “covered opinion”. Accordingly, this advice is not intended and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS regarding the transaction or matters discussed herein. Each taxpayer should seek advice from an independent tax advisor with respect to any Federal tax issues, transactions or matters addressed, discussed or referenced herein based upon his, her or its particular circumstances.

Mark as helpful

Bankruptcy and debt topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics