Overpayments

If you recently received a letter regarding unemployment benefit overpayments, called a “Benefit Overpayment Determination Notice,” please read the steps you can take below.

Note: The Maryland Department of Labor is addressing a backlog of unemployment insurance overpayments from prior years that were not pursued by the previous administration and, as part of this process, has sent letters throughout the second half of 2025 to claimants regarding those overpayments.

Recovering overpayments is a legally required part of the unemployment insurance system. Both state and federal law require that we now seek recovery of these funds. We’ve worked diligently to resolve structural challenges to restart this process in compliance with legal requirements, particularly by ensuring that every claimant receives detailed information about their full rights to appeal or request a waiver.

What is an overpayment and why does it happen?

When a claimant or a person posing as a claimant is paid benefits to which they may not be entitled, it is called overpayment. Overpayments can occur for several reasons, including but not limited to:

You did not accurately report your earnings
You filed for benefits while working
You did not verify your identity
You claimed unemployment insurance benefits in more than one state or district
You weren’t able or available to work or actively seeking work while receiving unemployment insurance benefits
You were the victim of identity theft or fraud committed by a third party, which was an ongoing issue during the COVID-19 pandemic

What steps can I take if I receive a notice of overpayment?

If a state audit finds that you are overpaid, you will receive an overpayment notice via mail. You will also get a notice in the Maryland Unemployment Insurance Portal (BEACON).
This notice will include the reason(s) why you were overpaid, how much you owe, and steps you can take, shown below:

Verifying your identity: Some unemployment insurance benefits are determined to be overpayments due to missing identification documents for the person who received benefits. If your notice indicates that you need to verify your identity to confirm that you are the person entitled to receive benefits,
- Visit the lobby of 100 S. Charles Street, Baltimore, MD 21201, Monday through Friday from 8:30 a.m. until 3 p.m. or one of our American Job Center locations with proof of your identity, such as a drivers license, passport, state issued ID, or permanent resident card.
  OR
- Email ui.overpaymentinquiry@maryland.gov
  OR
- Call 667-207-6520, Monday through Friday, 8 a.m. to 4 p.m. We are experiencing a high volume of calls on Mondays and Tuesdays, so we encourage you to call on Wednesday through Friday to reach customer support as fast as possible.
Addressing identity theft and fraud: If you suspect that someone stole your identity to file a claim in Maryland, complete a Request for Investigation of Unemployment Insurance Fraud form and submit it by email to ui.fraud@maryland.gov or by mail to: Maryland Dept of Labor 100 South Charles Street, Tower 1, Baltimore, MD 21201, Attn: Benefit Payment Control. If you received a Maryland Labor notification of overpayment due to your identity being stolen and used to commit unemployment insurance benefits fraud, you will not be held responsible for returning those funds.
Repaying an overpayment: If you want to repay your overpayment, follow the steps below for paying back an overpayment or follow the instructions in the Benefit Overpayment Determination Notice you received.
Applying to have your overpayment waived: If you are facing financial hardship and you want to request that your bill be waived, follow the instructions below for submitting a waiver or follow the instructions in the Benefit Overpayment Determination Notice you received.
Filing an appeal: If you need to dispute the overpayment determination, you can file an appeal. Follow the instructions below for filing an appeal or follow the instructions in the Benefit Overpayment Determination Notice you received.

Note: If your overpayment is related to an active appeal or you have applied for a waiver, you do not need to make a repayment until you’ve received a final decision from the Division of Unemployment Insurance.
If you have additional questions, call 667-207-6520, Monday through Friday, 8 a.m. to 4 p.m. We are experiencing a high volume of calls on Mondays and Tuesdays, so we encourage you to call on Wednesday through Friday to reach customer support as fast as possible.

How do I pay back the overpayment?

You can repay your overpayment on the Maryland Unemployment Insurance Portal (BEACON):

Go to the “Action Items” section.
Select “Pay Now” under the overpayment balance.
Follow the prompts to make the payment.

Screenshot of the Maryland Unemployment Insurance Portal (BEACON) website page that displays if you have an overpayment balance.

If you can’t repay it all at once, you may be able to set up a repayment agreement to pay in monthly installments. You can request this in the Maryland Unemployment Insurance Portal (BEACON):

Select “Benefit Payment” from the left menu.
If you qualify for a repayment plan, there will be a link titled “Payment Plan.”
Visit that link and follow the instructions.
Each month, you will receive a Benefit Overpayment Statement showing how much you owe and your previous monthly payments (received prior to the 25th of the month).

If you are unable to do this online, you can mail a check or money order made payable to MDOL to Maryland Dept of Labor, 100 South Charles Street, Tower 1, Baltimore, MD 21201, Attn: Benefit Payment Control.

What if I can’t afford to pay back the overpayment?

If you can not pay back the overpayment you received, you may qualify for a waiver.

If you can not repay the overpayment all at once, you can set up a repayment agreement to pay in monthly installments. You can choose to do this in the Maryland Unemployment Insurance Portal (BEACON) or contact a claims agent.

Can I appeal an overpayment?

Yes. You may appeal an overpayment decision to the Lower Appeals Division by using the Maryland Unemployment Insurance Portal (BEACON) or by email or letter. You must file an appeal within 30 days of the date on your overpayment notice.
To file an appeal online:

Log in to the Maryland Unemployment Insurance Portal (BEACON).
Select "Correspondence" from the left menu.
Select the “Search” button.
If there is a decision that you can appeal, there will be a “File Appeal” link on the end of the row of that decision notice.
Select the "File Appeal" link and fill out the form.
At the end of the process, you will be issued an appeal number. If you have to contact us about your appeal, please have that number ready.

To file an appeal via email or letter, include your:

Name exactly as it is on the decision notice
Claimant ID number
Telephone number
Date on the decision notice
Statement about why you disagree with the decision

Email your written appeal to UILowerAppeals.Labor@maryland.gov or mail it to:
Maryland Department of Labor
Lower Appeals Division
2800 W. Patapsco Avenue
Baltimore, MD 21230

How do I withdraw my appeal?

If your overpayment is resolved, but you filed an appeal before the resolution, you can withdraw your appeal with the Unemployment Insurance Division.

To withdraw an appeal online:

Log in to the Maryland Unemployment Insurance Portal (BEACON).
Select “Correspondence” from the left menu.
Select the “Search” button and find the appeal you wish to withdraw.
Click the “File appeal” link and complete the form to withdraw the appeal.

If you do not have access to the Maryland Unemployment Insurance Portal (BEACON), you can submit your withdrawal request via email, including a brief statement of why you disagree with the issue being appealed, to uilowerappeals.labor@maryland.gov.

If you have any questions or need further assistance, contact the Lower Appeals Division at 410-767-2421 or the Board of Appeals at 410-767-2781.

Who manages audits and overpayments?

The Benefit Payment Control in the Division of Unemployment Insurance promotes and maintains the integrity of the unemployment insurance program through detection, investigation, establishment, and recovery of unemployment insurance overpayments made to claimants. If you have questions about audits or overpayments, contact us.

Audits are generally done by comparing databases gathered from employers and tax agencies about who is earning money in Maryland.

If the Division of Unemployment Insurance finds that you received benefits that you weren’t entitled to, you will be responsible for repaying those benefits to the state.

If the Division of Unemployment Insurance finds that fraud occurred, there may be additional penalties and interest that you will have to pay. If it’s determined that you have committed fraud, you are ineligible to apply for unemployment benefits for 1 year and must repay the overpayment before being able to collect again. In some cases, there are additional consequences including being guilty of a misdemeanor and being subject to a fine and/or imprisonment.

Learn about fraud and identity theft

If you have any questions, contact us.