What if my unemployment benefits were applied to a prior overpayment? July 22, 2021 20:00 Updated Unemployment benefits intercepted to offset a prior overpayment are still considered benefits paid and are reportable and taxable. Related articles What is a non-fraud overpayment? What do I have to do to requalify for Regular state unemployment in the State of Missouri? Important Information General Information How can I get information about my claim?