Ask Terry Questions Repayment of Unemployment Benefits

Repayment of Unemployment Benefits

By Terry Savage on March 02, 2021 | Wild Card

My niece, a college student , had a part-time job at a popular movie theater chain. She would work there when home from school. Theaters closed due to the pandemic. She applied for unemployment benefits around April 2020 and was APPROVED. In February of 2021 she received a letter from IDES requiring repayment of several thousand dollars in benefits (which included COVID relief) because she is ineligible. Can this debt be forgiven since she was approved for the benefit in the first place? What can she do?

Terry Says

She should do nothing! The Federal government told the states they do not have to collect their mistaken overpayments. Pretty soon she will receive a “waiver” letter — stating that the state contacted her, and she does NOT have to repay. I know it’s stressful — but don’t send them any money now. Just sit and wait.
The only problem is that if she is still collecting benefits, they may dock her check. And she will have a hard time getting that money back even if they do waive the collection.

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