State law requires that you repay your overpayment before we can pay further unemployment benefits. Federal, state, or local governments file this form if they made payments of: Unemployment compensation.For tax year 2024, there are credit reduction states. When an overpayment is paid back in the same year, the employee's repayment will be reflected in his or her IRS Form W-2 Wage and Tax Statement. Any payments used to offset an overpayment will appear on your Form 1099G for year the payments were collected. Overpayments due to fraud cannot be offset. The Mass Claims program streamlines the unemployment benefit claims process for employers faced with either temporary or permanent layoffs. This guideline provides information on payment holds. State payment hold requirements apply to all individuals and entities indebted to the State of Texas. This online tool provides easy-to-use federal tax preparation software along with an extensive online library that will help you file your tax forms.