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Unemployment is garnishing my wages!

Submitted by on Fri, 01/09/2009 - 21:39
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When I received my paycheck today, I discovered that unemployment garnished my wages for almost $200. This is for an overpayment in benefits from back in 2005. I owe just over $4,000, and can not afford to pay them almost $400 a month. Is there anything I can do besides file for bankruptcy? I was not served any papers, and did not receive any letters.

Thanks ahead of time.


Usually you are informed by some means prior to the garnishement, but I think the govenment may have a different set of rules. This happenned to me with the IRS, but they were kind enough to send me a letter first.

Sorry, as this probably doesnt help much, so try to remain calm and I am sure someone much smarter than me will be along shortly. This is a great forum and they give great advice. :D


Submitted by VirtualPDLFighter on Sat, 01/10/2009 - 06:46

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Usually governmental bodies have different sets of rules than creditors in general. For example, the IRS doesn't need to get a court order to garnish your wages, they just go in and do it.

Unemployment probably falls under that sort of privilege. All they may be required to do is send you a notice by mail, and if you didn't pay by a certain date then they can automatically start a garnishment.

Unfortunately most government debts also fall outside of bankruptcy. So I don't think filing BK will eliminate it.

The most you can probably do is call the unemployment office and see if they'll setup payment arrangements instead of the garnishment.


Submitted by DebtCruncher on Fri, 01/16/2009 - 17:33

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lhaefs,are you sure this isn't the restitution part of it? I know the resitution part they will take once you start claiming again, even if you paid them what you owed them for overpayment, through paying with your states tax refund etc.

This part of the repayment has to be made through your unemployment checks if I remember correctly.

As you discovered, you will not get a letter regarding the resitiution portion, they will automatically start taking once you file and are approved again. Though to be sure, I'd still contact them.


Submitted by beli2005 on Tue, 01/20/2009 - 09:25

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can an overpayment of unemployment be taken out of your federal income taxes


Submitted by on Wed, 01/28/2009 - 23:12

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Each state is different on how they handle overpayment. I know for my state, since we have state income tax, my overpayment came out of that, and that was only after not contacting them to make payment arrangements. So contact your unemployment office and see how they handle it. Or you may be able to find the information on their online website.

wanted to add that it should've also said in your unemployment handbook that you got from your state as to how they handle over payments.


Submitted by beli2005 on Thu, 01/29/2009 - 06:14

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I live in PA. My state, as well, handles 'overpayments', of any kind, through your Tax Refunds. I din't think they could take ANYTHING out of Unemployment, since this is a 'temporary' wage.


Submitted by sdchargers_63 on Thu, 01/29/2009 - 08:17

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I thought I would reply quick as a guest because I am at work. lol

Just to clear this up... I am currently NOT on unemployment, I am working, and my wages are being garnished from previously being overpaid on unemployment.

I ended up emailing Wisconsin unemployment asking for a smaller portion of my check to be garnished. I explained that I couldn't not afford the $360 a month, and asked if I could pay $200 a month instead. (or $100 a check) They emailed me back about a day later approving it, mailed me a letter, and also my payroll department a letter. I am still amazed at how fast they responded... I guess this shows that it definitely DOES NOT hurt to ask!

Thanks for all of your responses and help everyone!!


Submitted by on Sat, 02/07/2009 - 14:46

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The profanity deleted. just want their money, they could care less if you ended up homeless![samebox:02b78ca008="paulmergel"]nice,real nice.not everyone shares your opinion.you are entitled to it,but no profanity please.[/samebox:02b78ca008]


Submitted by on Thu, 04/23/2009 - 04:42

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Well I know that in the state of Illinois, if you owe unemployment, they will take their money either from you state taxes or from you unemployment benefits. You won't be able to collect until they are paid. Also, they will assign you penalty weeks. So if you were collecting benefits and were not suppose to, once you pay unemployment back, they can and will give you penalty weeks. Meaning you won't be able to collect your money until those weeks has been served.


Submitted by on Tue, 04/28/2009 - 08:20

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tell them to go to hell your not paying!


Submitted by on Thu, 05/21/2009 - 19:48

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I just got through an unemployment garnishment. I owed over $3600 and I also found out that taxes were never taken out of it when I was claiming unemployment. Once the Federal IRS and State Department of Revenue caught on. They took my tax refunds to cover the taxes. My question is now that I've paid all that unemployment back, can I get my tax refunds back. I don't feel they should be able to tax me when I wasn't supposed to get the money to begin with and I paid it all back.


Submitted by on Thu, 06/04/2009 - 01:46

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i owe one thousand in over payment but i need to go back on unemployment this year, will they keep my checks or just a portion of each week i get from each unemployment check


Submitted by on Sat, 06/06/2009 - 09:52

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OMG...I am really scared now. I was just penalized for getting unemployment for 1 1/2 yrs before they found out I was fired (not a just cause in my book) from a job I did not put down on my app in the beginning. I am ordered to pay back $12,890 within 45 days. How the hell am I going to be able to do this? I am unemployed for God's sake. A criminal background check showed something on my record that I did not reveal to them. it happened 25 yrs. ago. I found that the information they received in incorrect and the attorney generals office had input it incorrectly. I am fighting and appealing but I doubt I will win. they are already taking the employers side. Has anyone ever won their case? any help from anyone would be so much appreciated. I am sick inside and honestly dont know what to do. I never did what they are saying and they will not believe me. Neither the employer nor the unemployment office. Pls. help me. I live in Cincinnati Ohio.


Submitted by on Tue, 07/21/2009 - 11:33

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I owe the state of VA overpaid unemployment Benefits paid to me when I was out of work in that state. I appealed the case to the Court of Appeals and it wasn't until the beginning of August 2009 that I heard back from the Court that the appeal was without merit. Prior to that, the Unemployment office sent me numerous threatening letters to pay and I responded by writing writing two letters explaining that the case was in appleal status and to wait until the out come of the case. I called yesterday to start payment arrangements and was shocked to learn that they had reported the debt to the Credit Bureaux and assigned a legal firm to collect the money from me. Asked how that could happen when the case is in legal status, the supervisor at the office said he understands but cannot undo the damage. He however said if I dispute it, he will provide the papers to show I owe the money. I have been trying to keep my credit straight and here comes some knuckle head and he just messes it all up and doesn't give a shit. The worse part is my credit is messed up without him giving me ample time to pay and i still have to pay the money and start calling the CB to fix this. I am thinking if he is already messed up my credit, Eff it, i won't pay. I know live in MD and work in DC even though employer's main corporate office is VA. Can they garnish my wages for this even though I work and live in another state? What are my recourses here? By law what is the required time allowed a creditor before reporting to the credit bureaux?


Submitted by on Tue, 08/25/2009 - 13:51

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It would be best to hire someone like a tax specialist. they know best with regards to this matter. maybe you can still appeal for IRS debt settlement program and see how much of your tax you can still eliminate...



Quote:

Originally Posted by l.haefs
When I received my paycheck today, I discovered that unemployment garnished my wages for almost $200. This is for an overpayment in benefits from back in 2005. I owe just over $4,000, and can not afford to pay them almost $400 a month. Is there anything I can do besides file for bankruptcy? I was not served any papers, and did not receive any letters.

Thanks ahead of time.


Submitted by on Thu, 09/03/2009 - 01:03

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I too have an overpayment from enemployment and I am exspecting a refund and nervous that we will not get it since I owe over 4000 dollars to unemployment due to a overpay... I have not received nothing from the irs on them taking anything but I am scared we will not get it... What should I think am I getting a refund or NOT??? Someone please put me at ease...


Submitted by on Fri, 02/19/2010 - 12:07

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Most likely your refund will be taken to pay back the unemployment you incorrectly collected. The state has already filed an intercept with the IRS. It will take time to get notification from IRS. Sorry to give you the bad news.

I have my refunds held for prior federal taxes and my daughter had hers held for owing on a student loan. Also, some people have theirs held for owing back child support.


Submitted by aubrey on Mon, 02/22/2010 - 06:08

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Quote:

Originally Posted by NASCAR_Devil
Wow...if it was only that easy

i owe unemplyment because i didnt repoert i was workin 20 hours a week i couldnt make a livin off working wages or the wages i earned thorugh unemployment which ewas only 100 dollars a week. so with both checks i was bringin home around 280 a week. unemployment is our money we pay unemployment taxes. it started out i owed 1800 they said which i dont know how now its up to 3200 if i can pay u 1800 how do u fighure i can pay u 3200. the prsident not only needs to look at penaltys and interest that they and the irs charge they need to look at other things as well such as the cost of life and car ins its breakin us all. if any of us have the mony to get it


Submitted by on Mon, 08/23/2010 - 07:34

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Quote:

Originally Posted by Anonymous
can an overpayment of unemployment be taken out of your federal income taxes



No...they cannot take out overpayment from your Federal tax return. They can only take out from your state refund.


Submitted by on Thu, 08/26/2010 - 12:30

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I spoke with my Unemployment Division, and they had told me if there was overpayment or an administrative judge order against me, that I can pay monthly (to their payment center) as much as I can afford. She said even $5 a month if that's all I can afford. She said this will prevent them from garnishing your wages.

I hope that helps.


Submitted by on Thu, 08/26/2010 - 12:34

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Quote:

Originally Posted by Anonymous
No...they cannot take out overpayment from your Federal tax return. They can only take out from your state refund.


Incorrect! If you owe a debt (back taxes, overpayment of unemployment benefits, etc.) to a state agency, your federal tax refund absolutely CAN be withheld to pay for it. This applies even if you're already participating in a voluntary repayment plan.


Submitted by OhioGal1 on Thu, 08/26/2010 - 14:12

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I am trying to figure out, my husband has been dealing with Unemployment wanting money back and yet they are still sending him checks every two weeks, and AGAIN they just sent us ANOTHER letter saying we owe more money, They have been deducting payments from the checks they r sending, but if we owe money because he doesn't qulify for benifits, then why in the BEEP are the giving him a check??? I figure it is this simple, if he doesn' qulify then do not pay, but if he does, then why do we have to pay anything back. they are the ones that figure out what we get paid, so it is not my fault if you send me the wrong amount. It is your own fault, and just correct it when you send out the next check . but ofcourse when does this state make sense????


Submitted by on Wed, 10/27/2010 - 13:03

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Quote:

Originally Posted by OhioGal1
Yes, we pay unemployment taxes and it is ours to collect...WHEN WE ARE UNEMPLOYED! If you're working a part-time job, you CANNOT ALSO collect unemployment, period!


In some states you can collect what they call "partial unemployment". If you have a part time job and don't make over your weekly benefit, you get the difference, if you have enough earnings for your benefit year. My youngest daughter works about 10-16 hours a week and gets partial payments. We're in New Jersey.


Submitted by aubrey on Fri, 10/29/2010 - 06:59

aubrey

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I don't understand how I ended up owing 566.00 for being over paid!!!?? How did this happen. How the hell was I suppose to know I was being over paid!! Someone told me that maybe because I didn't file a claim for a few weeks and this is the result!! Can anyone tell me how this happened!?


Submitted by on Tue, 12/28/2010 - 10:02

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Did you return to work? It happens if you go back to work and don't report it immediately. Unemployment continues to send you a check because they don't know you are working. They eventually catch up to you. I've known people to go back to work and continue to file for unemployment, sometimes just for a few weeks to help them "catch up".

Unfortunately, it also happens if unemployment makes a mistake.


Submitted by aubrey on Tue, 12/28/2010 - 11:05

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Im a single mother of two, and not receiving ANY help from their father.... i was on unemployment in WA back in 2007ish, had back surgery and now am able to work. I am now working full time and unemployment (which i paid into before i collected) says i owe them 6000 because while recovering from back surgery i missed a review or something.... and are garnishing 25% of my wages. I CANT raise two kids on what im making after garnishments. If anyone can help, please...please...please. I would make more money on welfare but i dont want to be a system sucker, im ABLE bodied, and willing to work but I cant afford to only make 25% BELOW minimum wage.


Submitted by on Mon, 06/11/2012 - 16:13

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So ur saying even if ur on a payment plan tbey can take ur income tax?why would they do that!


Submitted by on Mon, 02/04/2013 - 04:15

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Seriously!im in kansas and they will end up tsking my entire income tax and i have 3 kids and i need that money or were homeless and have no car!


Submitted by on Mon, 02/04/2013 - 04:17

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Can unemployment take all the money out of your bank? Also, will getting an attorney to help fight the fee help at all? I was paid $560, now they want over $6000


Submitted by on Fri, 02/22/2013 - 08:10

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I was wondering if they take your federal taxes, state taxes or both.. I live in the state of New Jersey


Submitted by on Wed, 01/30/2013 - 11:27

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