Unemployment Insurance (UI) is given to people who lose their jobs when it is not their fault. Most people just call it “Unemployment.” An Unemployment overpayment happens when you get money you shouldn’t have. There are 2 types of overpayments:
Misrepresentation overpayment (this is also called a fraud overpayment)
Read the notice carefully. If this is your first notice about the overpayment, you can appeal. You must appeal by the date on the notice. There are no exceptions to this rule. You can appeal online or by sending a letter. The instructions to appeal are on the notice. You can call your legal aid office for help, but do not miss your appeal time waiting for help with your case.
You have the option of paying what you can or making a payment agreement. We do not recommend making payment plans. Even if you make a payment plan, the following will happen:
The state uses revenue recapture to pay the overpayment back. This means they take your state tax returns, renter’s rebates, property tax rebates, and lottery winnings. Talk to your tax preparer about keeping your state tax refunds as low as possible. See our fact sheet When They Keep Your State Tax Refund, for more information on revenue recapture. After 6 years for a regular overpayment and 10 years for a misrepresentation overpayment, whatever has not been paid through revenue recapture is erased from the record.
If you have a regular overpayment and qualify for Unemployment after the overpayment amount has been figured out, the state takes 50% or 100%. They take 100% if the overpayment is because you didn’t report income and 50% for other reasons. You are not eligible for any Unemployment if you have a fraud overpayment.
Unlike other kinds of overpayments, the state doesn’t waive or stop collecting Unemployment overpayments because you are in other programs, like MA or MFIP.
Make sure you update your address for the next 4 years after you stop getting Unemployment. Do this in your Unemployment account online or by calling (651) 296-3644. If there is a change to your account or your overpayment, you are responsible for responding to mail sent to the address in your account.