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Your Tax Refund or Lottery Money Was Sent to the EDD

The EDD works with the Internal Revenue Service (IRS), the California Franchise Tax Board (FTB), the California State Lottery, and the California State Controller to collect any debt you owe from an Unemployment Insurance or State Disability Insurance (SDI) benefit overpayment.

We sent you a Notice of Overpayment (DE 1444) because you were paid unemployment or SDI benefits that you were not eligible to receive. For more details on the Benefit Payment Control program’s purpose and legal authority, see Overpayments and Penalties.

The EDD can collect unpaid debts by reducing or withholding the following:

Federal income tax refunds
State income tax refunds
State Lottery winnings
Funds from unclaimed property

If you think the amount withheld was wrong, call 1-800-676-5737 or write to us at:

Employment Development Department
Benefit Overpayment Collection Section
PO Box 826218, MIC 91
Sacramento, CA 94230-6218

Federal Income Tax Refund
The IRS can take all or part of your federal income tax refund to pay your overpayment debt. This is done through the Treasury Offset Program (TOP). Federal law allows the TOP to collect unemployment overpayments caused by fraud under Title 26, United States Code Section 6402(f). Visit Treasury Offset Program FAQs for more information on how the EDD is involved with the TOP. You can also get general information from the TOP's Frequently Asked Questions for the Public page.

Federal Income Tax Refund

The IRS can take all or part of your federal income tax refund to pay your overpayment debt. This is done through the Treasury Offset Program (TOP). Federal law allows the TOP to collect unemployment overpayments caused by fraud under Title 26, United States Code Section 6402(f).

Visit Treasury Offset Program FAQs for more information on how the EDD is involved with the TOP.

You can also get general information from the TOP's Frequently Asked Questions for the Public page.

California State Income Tax Refund
The California Franchise Tax Board (FTB) can take all or part of your California state income tax refund to pay your unemployment or SDI overpayment debt. California Government Code Section 12419.5 allows the State Controller to offset any amount owed to a state agency by a person or entity.

California State Lottery Winnings
The California State Lottery can take all or part of your lottery winnings to pay your unemployment or SDI overpayment debt. California Government Code Section 12419.5 allows the State Controller to offset any amount owed to a state agency by a person or entity.

California Unclaimed Property
The State Controller can take all or part of your unclaimed property funds to pay your unemployment or SDI overpayment debt. Unclaimed property includes uncashed cashier’s checks, money orders, life insurance benefits, inactive bank accounts, stock dividends, and other similar items. California Government Code Section 12419.5 allows the State Controller to deduct any amount you owe the State by using your unclaimed property.

California Unclaimed Property

The State Controller can take all or part of your unclaimed property funds to pay your unemployment or SDI overpayment debt. Unclaimed property includes uncashed cashier’s checks, money orders, life insurance benefits, inactive bank accounts, stock dividends, and other similar items. California Government Code Section 12419.5 allows the State Controller to deduct any amount you owe the State by using your unclaimed property.