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Yes!! I have recently had my federal tax return as well as my state tax return taken by unemployment. There was a new law passed sometime recently that says they now have the right to do so. When I spoke with unemployment they were very vague about the whole situation which proves that it is something new. Be careful!! They will take it and there is nothing you can do about it. They give you the chance to protest it. But 9 times out of 10 it wont matter

Lets be clear here: Yes anyone can get the right to take pretty much any asset of someone that owes THEM money. However, if they aren't the government, it cannot directly receive a tax refund (although if you deposit it in a bank they could then). So yes, the government can retain your refund to pay any debt you owe them.

NOW THE CRUCIAL THING: (What you seem to want to avoid mentioning) - The only way you could OWE on unemployment is if you applied and received a payment(s) you didn't have a right to. Like you thought they wouldn't see if you continued collecting after you returned to work...and then thought if you ignored the demands for repayment they made it would go away.

Yup, the government can not pay YOU while you owe them, especially for fraud. Be happy they aren't prosecuting you for criminal acts.

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Q: Can unemployment take your federal tax return?
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Related questions

Are federal unemployment benefits taxable in Georgia?

Yes your unemployment benefits will be taxable income in Georgia on your federal 1040 income tax return the first 2400 of your unemployment compensation that you received in the year 2009 will not subject to the federal income tax return.


What is the federal id number for Indiana Unemployment so I can file my tax return?

3421890


Can you file a tax return from unemployment which you drew in another state?

Yes on your federal 1040 income tax return ALL of your gross worldwide income is REPORTED on the only1 federal income tax return that would be ALLOWED to file for the tax year.


Do you have to have taxes taken out of unemployment in Florida?

Unemployment compensation amounts that are received during the year is added to all of your gross income for the year taxed at your marginal tax rate on federal 1040 income tax return. You can choose not to have any federal income tax withheld from your unemployment compensation payment amount. For the 2009 tax year the first 2400 of unemployment compensation that was receive was exempt from the federal income tax on your 2009 1040 federal tax form.


How much Federal unemployment tax do you wit hold?

None. Federal Unemployment tax (940) is an employer-paid tax.


Is the first2400 of unemployment tax free?

Yes for the 2009 tax year the first 2400 of unemployment compensation that you received in the year 2009 was free of the federal income tax when you completed your 1040 federal income tax return correctly on page 1 Line 19 unemployment compensation in excess of 2400 per recipient.


What's the wait estimated time to get a federal tax return?

It depends on where in the US you have sent your federal tax return, as to how long it will take for you to get it back. But the estimated time for you to get your federal tax return back would be around 8-14 days.


Can state take federal income tax return?

Sure.


Why would you get a return from federal tax when you had no taxes with held from unemployment was unemployed the whole year and filed jointly married with total income below forty thousand dollars?

Because the other taxpayer on the MFJ income tax return had more income tax withheld from the pay than what the federal income tax liability was when the income tax return was completed.


What are federal tax forms940?

It is a form that needs to be filled in by a company every year. It reports the business's federal unemployment taxes pursuant to the Federal Unemployment Tax act.


Is federal tax on gasoline deductible on a 2008 federal tax return?

No. Not any year. And Federal Tax, even income tax, is not deductible on a return.


Can the state take your federal tax return for court fines?

yes