Can the state of Maryland Garnish Unemployment benefits for owed taxes?
I have a friend who owes the state just over $1000 in backed taxes from this past year. He just lost his job and wants to apply for unemployment but isn't sure whether the state would be able to garnish his benefits or not.
- 1 decade agoFavorite Answer
It's not a garnishment but that's a bit of a legal technicality. Garnishment requires a court order and the government does not need a court order to levy wages, income, assets, etc.
As a matter of practice most states don't levy unemployment benefits but they DO have the legal authority to do so. You should contact the state DOR and explain your situation. They can put your account in uncollectible status until you find work and are back on your feet. Not doing so CAN result in a levy against your benefits, so don't let this slide!