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 Why did I receive an Overpayment Determination? Who can I call with questions about my unemployment claim? Is there a program that will help me if I lost my job due to foreign imports or my job moving overseas? Important Information What happens if I am overpaid?