Unemployment overpayment: When too much money is a problem(INVESTIGATETV)

(InvestigateTV) — The most recent report from the U.S. Department of Labor (DOL) found that 16.47% of unemployment insurance (UI) payments were improper, including overpayment.

The amount people can collect weekly usually depends on how much they were making when employed.

Sarah Foster with Bankrate said sometimes the state accidentally pays out too much money—called an overpayment.

“That’s when the state will send you a check that’s even larger than what you were supposed to get,” Foster explained. “And a lot of Americans might think, you know, this is just a gift, you know, divine intervention. A lot of Americans really need this money when they’re losing their positions. But unfortunately, Uncle Sam will come back requesting this money and it’s going to be costly if you don’t figure it out.”

Foster said people collecting UI should make sure they stay in contact with their state unemployment office and know the rules. If the state overpays their unemployment insurance benefits, they will typically need to repay the money by a set due date.

“If you realize that you are getting more money, than you probably should be in your weekly checks, you can either apply for an unemployment, you know, overpayment waiver,” she said. “You can also pursue an option that helps you maybe, split up these payments because Uncle Sam will want this money back.”

Foster said people who receive too much money could file an appeal or request an overpayment waiver. And they may be able to negotiate a payment plan to make the balance owed more manageable if they are unable to pay it in full.

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