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FAQs — Treasury Offset Program (TOP)

The Treasury Offset Program (TOP) is run by the US Department of the Treasury. It’s a federal program that collects debts when people owe money to federal and state agencies. If you owe money to a government agency and haven’t paid it, the government can take money from your federal payments, like tax refunds, to cover the debt. The Employment Development Department (EDD) is required by federal law to participate in this program and can collect Unemployment Insurance benefit fraud overpayments from federal income tax refunds.

Before the EDD sends your debt to the TOP, we will send you a Notice of Intent to Offset Your Federal Income Tax Refund (DE 957). You have 60 days to either pay the full amount of your debt or prove that you don’t owe it.

The Department of the Treasury will send you a notice if money was taken to help pay off your overpayment. The notice will include details like the amount taken, the date it was taken, and the EDD’s contact information.

If you have questions, call the EDD Benefit Overpayment Collection Section at 1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m. Pacific time, except on state holidays.

Why did I get this Notice of Intent to Offset Your Federal Income Tax Refund (DE 957)?

EDD records show that you owe money for an unemployment benefit fraud overpayment. This debt can be collected through the TOP. You have 60 days to prove you paid the debt in full or show that you don’t owe it. Follow the instructions on the notice.

If you have questions, call the EDD Benefit Overpayment Collection Section at 1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m. Pacific time, except on state holidays.

What if I disagree with the overpayment amount on the Notice of Intent to Offset Your Federal Income Tax Refund (DE 957)?

Read the notice carefully. If you disagree with the amount you owe or have other questions, call the EDD Benefit Overpayment Collection Section at 1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m. Pacific time, except on state holidays.

How can I pay my benefit overpayment so I receive all of my federal income tax refund?

You must pay your benefit overpayment in full within 60 days of the date on the Notice of Intent to Offset Your Federal Income Tax Return (DE 957) to avoid having your refund offset (reduced or withheld).

We offer several options for making a payment:

Online through Benefit Overpayment Services. Visit myEDD to create or log into your account. You can view your balance, make a payment, or set up an installment agreement.
Online through the Make a Payment option. You can pay with Automated Clearing House (ACH) debit or by credit card. No enrollment necessary. Note: If you pay with a credit card, you will be charged a fee.
By phone using a credit card (fees apply).
By mail using a personal check, cashier’s check, or money order (no fee).

What documents will prove that I don’t owe the overpayment, and where do I send them?

If you think you don’t owe this debt because:

It was discharged in bankruptcy court: Send copies of the bankruptcy documents showing your case number, filing date, and court name.
You already paid in full: Send proof from the Benefit Overpayment Collection Section showing you paid.
An administrative law judge changed the overpayment amount after you appealed: Send a copy of the appeal decision.
Someone used your Social Security number: Send copies of documents showing you reported the identity theft. These documents include:

Police and credit agency reports.
Internal Revenue Service (IRS) letters.
Letters from your state tax agency or the Department of Motor Vehicles (DMV).

Mail or fax your documents to us with a copy of the DE 957 notice:

Mail:
Employment Development Department (EDD)
PO Box 2530
Rancho Cordova, CA 95741

Fax: 1-916-449-2159

Why are you sending my overpayment to the TOP if I’m already making payments or you’re taking my unemployment benefits?

The law requires the EDD to collect overpayments from your federal and state tax refunds, state lottery winnings, and unclaimed property funds even if you are already paying.

I got my tax refund before I got the notice. Will I need to return my refund to the IRS?

No. Future federal tax refunds will be taken until your overpayment is fully paid.

Why did the EDD take my federal tax refund?

EDD records show you have an unemployment benefit fraud overpayment with your Social Security number. The law lets the IRS collect your refund to pay off your debt.

If you have questions, call the EDD Benefit Overpayment Collection Section at 1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m. Pacific time, except on state holidays.

Does the EDD need my permission to take my federal income tax refund?

No. When you have an unpaid overpayment, federal law allows your income tax refund to be taken without your permission. This is done to help pay off the debt you owe.

My spouse and I filed a joint federal income tax return, and my spouse’s debt caused our refund to be taken. How can I get my part back?

Contact the IRS to request your part of the refund. Visit the IRS website, call 1-800-829-3676, or visit a local IRS Office.

I have never lived, worked, or filed for unemployment in California, but my federal income tax refund was taken for a California overpayment. What should I do?

Call the EDD Benefit Overpayment Collection Section at 1-800-676-5737, Monday through Friday, 8 a.m. to 5 p.m. Pacific time, except on state holidays.

Will my future federal income tax refunds be taken for this debt?

Yes. If you still owe money for an overpayment, your future income tax refunds will be taken until the debt is paid in full. Visit Benefit Overpayment Services to learn how to pay.