Kentucky Unemployment Overpayment Waiver (Forgiveness): How to Apply + Forms + Balance

Complete guide to KY unemployment overpayment forgiveness (waiver): eligibility, waiver form, deadlines, and how to apply.

If you’ve received a notice from the Kentucky Office of Unemployment Insurance (OUI) saying you were overpaid unemployment benefits and must repay hundreds or thousands of dollars, you may be eligible to request an overpayment waiver—also known as overpayment forgiveness. This process allows you to ask the state to cancel or reduce the amount you owe if the overpayment was not your fault and repayment would be unfair or cause financial hardship.

Kentucky has a legal framework for overpayment waivers, and in 2024, Senate Bill 140 updated the state’s waiver provisions for certain pandemic-era, non-fraud overpayments and changed the prior 30-day application deadline for covered cases. This guide will walk you through everything you need to know about requesting a KY unemployment overpayment waiver, including eligibility requirements, how to apply, where to find the waiver form, how to check your overpayment balance, deadlines, documents you’ll need, and what happens after you submit your request.

1. What “Overpayment Forgiveness” Means in Kentucky

In Kentucky, overpayment forgiveness and overpayment waiver mean the same thing: a formal request asking the Kentucky Office of Unemployment Insurance (OUI) to cancel or reduce the amount you owe due to an unemployment overpayment. When a waiver is granted, you do not have to repay some or all of the overpaid benefits.

Waiver vs. Appeal vs. Repayment Plan (KY)

It’s important to understand the difference between three separate processes:

• Waiver (forgiveness): You accept that you were overpaid, but you’re asking the state to forgive the debt because it wasn’t your fault and repayment would be unfair or cause hardship.
• Appeal: You disagree that you were overpaid at all, or you believe the amount is incorrect. An appeal challenges the underlying determination that caused the overpayment.
• Repayment plan: If you don’t qualify for a waiver (or while your waiver is pending), you can request to pay back the overpayment in monthly installments instead of a lump sum.

In many cases, you can file both an appeal and a waiver request if your state notice allows it. Check your overpayment determination letter for specific instructions.

Common Reasons for KY Overpayments

Overpayments in Kentucky can occur for many reasons, including:

• Unreported or underreported earnings: You worked part-time or had gig income but didn’t report it correctly when certifying for benefits.
• Employer protest: Your employer successfully challenged your claim, and the state reversed weeks you were already paid.
• Eligibility change: The state later determined you were not eligible for benefits (e.g., availability issue, job refusal, separation for misconduct).
• Agency error: The Kentucky OUI made a mistake in calculating your benefits or determining your eligibility.
• Identity verification issues: Your claim was flagged for ID verification and later disqualified, but you already received payments.
• Pandemic-era errors: Many overpayments occurred during the COVID-19 pandemic due to rapid expansion of federal programs like PUA (Pandemic Unemployment Assistance) and PEUC (Pandemic Emergency Unemployment Compensation).

Your overpayment notice will explain the reason for the overpayment, the amount you owe, and instructions on how to repay or request a waiver.

2. First: Read Your KY Overpayment Notice (Deadline + Type)

Before you request a waiver, carefully read your overpayment determination notice from the Kentucky Office of Unemployment Insurance. This notice contains critical information you’ll need, including the reason for the overpayment, the amount owed, and any deadlines for requesting a waiver or appeal.

Where the Deadline Appears

Your overpayment notice will typically include a deadline for requesting a waiver or filing an appeal. However, Kentucky Senate Bill 140 (passed in 2024) changed waiver deadlines for certain pandemic-era claims:

• For certain covered overpayments tied to claims during Jan 27, 2020 through Sep 6, 2021, SB 140 removed certain limiting provisions and made the waiver request time frame unlimited for covered cases. Your determination notice still matters for your exact instructions. The exact covered dates and new deadline provisions vary by how the bill applies to your specific overpayment. Check your determination notice for the deadline that applies to your case.
• For other overpayments: Standard waiver deadlines may still apply. Check your notice for specific deadlines and follow them closely.
• For appeals: Appeal deadlines are separate from waiver deadlines and are typically strict (often 15–30 days). If you plan to appeal, do not miss the appeal deadline.

Non-Fraud vs. Fraud Overpayment (Why It Matters)

Your overpayment will be classified as either non-fraud or fraud. This classification is critical because it determines whether you’re eligible for a waiver:

• Non-fraud overpayment: The overpayment resulted from an error, misunderstanding, eligibility change, or other reason that was not intentional deception. Non-fraud overpayments are eligible for waiver consideration if you meet the requirements.
• Fraud overpayment: The state determined that you knowingly provided false information or concealed material facts to obtain benefits you were not entitled to. Fraud overpayments typically cannot be waived and may result in penalties, disqualification, and potential criminal prosecution.

Your overpayment notice should clearly state whether the overpayment is classified as fraud or non-fraud. If you believe the fraud determination is incorrect, you can appeal that determination.

3. Who Qualifies for a KY Unemployment Overpayment Waiver?

To qualify for an overpayment waiver in Kentucky, you must meet specific eligibility criteria established by state law and federal guidance. Kentucky’s waiver framework is based on two main requirements:

Requirement 1: Not Your Fault (Non-Fraud)

The overpayment must have been made through no fault of your own. This means:

• You did not knowingly provide false information or conceal facts to obtain benefits.
• You reported information accurately and in good faith.
• The overpayment resulted from an agency error, employer protest, eligibility change, misunderstanding, or other reason that was not intentional fraud.
• You did not act with fraudulent intent.

Important: If the Kentucky OUI determines that the overpayment was caused by fraud, waivers are almost never granted. Fraud overpayments may result in penalties, benefit disqualification, and potential criminal prosecution.

Requirement 2: Repayment Would Be Unfair / Hardship

You must also demonstrate that requiring you to repay the overpayment would be contrary to equity and good conscience or cause financial hardship. This typically involves showing that:

• You relied on the benefits in good faith and used them for necessary living expenses.
• You no longer have the funds because you used them for rent, food, utilities, medical care, childcare, or other essential expenses.
• Repayment would prevent you from meeting basic living expenses or cause significant financial hardship.
• You have limited income and high essential expenses, making repayment impossible or extremely difficult.

Kentucky may require you to submit a monthly budget worksheet and supporting financial documents (pay stubs, bank statements, bills, etc.) to demonstrate hardship.

4. How to Apply for a KY Unemployment Overpayment Waiver (Step-by-Step)

The process for requesting an overpayment waiver in Kentucky depends on when your claim was filed and how the Kentucky OUI handles waivers. Here’s a step-by-step guide:

Step 1 — Log in to Your Kentucky UI Claimant Portal

Kentucky’s unemployment system uses several online portals. To manage your claim and check for waiver options, log in to the appropriate portal:

• KEWES (Kentucky’s Self-Service portal): Used for accessing employer and claimant information.
• UI Claims Portal: Used for filing new claims and weekly certifications. To file online, you must sign in with ID.me for identity verification (as documented on Kentucky’s official portal).

If you’re unsure which portal to use, check your overpayment notice for login instructions or visit the Kentucky Career Center homepage for guidance.

Step 2 — Find Your Overpayment Case / Waiver Option

Once logged in, look for your overpayment case information. The exact location and menu names can vary, but common places to check include:

• Determinations section (to view overpayment notices and decisions)
• Overpayment or Balance section (to see what you owe)
• Waiver Request or Appeal section (to submit a waiver application or appeal)

Important: The option name and process can vary depending on when your claim was filed and whether your overpayment is pandemic-related. Always follow the instructions in your overpayment notice. If you don’t see a waiver option online, you may need to submit a written request (see Step 4 below).

Step 3 — Complete the Waiver Questions (Hardship + Equity)

If there’s an online waiver request form, you’ll typically be asked to:

• Attest that the overpayment was not your fault: Confirm that you did not knowingly provide false information or act fraudulently.
• Explain your financial situation: Describe why repayment would cause financial hardship or be contrary to equity and good conscience.
• Provide income and expense information: You may need to complete a monthly budget worksheet showing all your income sources and essential expenses.
• Upload supporting documents: Attach proof of income, expenses, and any other relevant documentation (see Section 7 below for a complete checklist).

Be honest and thorough in your responses. Incomplete or inaccurate information can delay processing or result in denial.

Step 4 — Upload/Submit Documents + Keep Proof

If you cannot submit your waiver request online, or if your notice instructs you to submit a written request, you can:

• Prefer portal upload/secure message: Whenever possible, use your online portal’s upload feature or secure messaging system instead of mailing documents. This is faster and more secure.
• Mail your request (only if instructed): Send a written waiver request with your claimant ID/claim number (and only the last 4 digits of your SSN if your notice specifically requires it) to the address shown on your determination notice. Use certified mail with return receipt to confirm delivery. Never send full SSN by unencrypted mail.
• Keep copies: Always keep copies of everything you submit. Do not mail original documents you cannot replace.

Step 5 — Track Status and Respond Quickly

After submitting your waiver request:

• Check your portal regularly for updates on your waiver status.
• Watch your mail and email for any requests for additional information.
• Respond promptly to any requests from the Kentucky OUI. Failure to respond can result in automatic denial.
• Keep certifying for weekly benefits if you’re still unemployed. Don’t stop filing weekly claims just because you have a pending waiver.

5. KY Unemployment Overpayment Balance: How to Check What You Owe

If you’ve been notified of an unemployment overpayment, you can check your current KY unemployment overpayment balance (the amount you owe) through your online account or by contacting the Kentucky OUI directly.

Check Balance Inside Your Portal Account

To view your overpayment balance online:

1. Log in to your Kentucky unemployment portal: Visit KEWES or the UI Claims Portal and sign in with your credentials.
2. Look for your overpayment information: Navigate to sections labeled “Overpayment,” “Determinations,” “Balance,” or “Account Summary.” The exact menu name varies.
3. Review your balance: Your overpayment balance will show the total amount you owe, any payments you’ve made, and the remaining balance.
4. Check for updates: If you’ve submitted a waiver request or made payments, your balance may update accordingly (though processing times vary).

You can also view your overpayment balance on the Kentucky Career Center Make a Payment page, which provides links to check your balance and make payments online.

What If the Balance Changes? (Adjustments, Offsets, Reversals)

Your overpayment balance can increase or decrease for several reasons:

• Benefit offsets: If you’re still receiving unemployment benefits, the Kentucky OUI may automatically deduct a portion of your weekly payment to repay the overpayment. This will reduce your balance over time.
• Manual payments: If you make one-time or installment payments, your balance will decrease.
• Interest or penalties: In some cases (especially for fraud overpayments), interest or penalties may be added, increasing your balance.
• Adjustments or reversals: If you successfully appeal the overpayment determination, or if the state corrects an error, your overpayment may be reduced or eliminated.
• Waiver approval: If your waiver is fully or partially approved, your balance will be reduced or cleared.

6. KY Unemployment Overpayment Waiver Form: Where to Find It + How to Submit

Many people search for a specific KY unemployment overpayment waiver form, but the process in Kentucky varies depending on when your claim was filed and how the Kentucky OUI handles waiver requests. Here’s what you need to know:

Is There a Specific Waiver Form?

Kentucky does not always use a single, universal overpayment waiver form. Instead, the waiver process depends on the type of overpayment:

• Pandemic-era overpayments: For certain pandemic-era overpayments covered by updated waiver rules, the Kentucky OUI may automatically review eligible claims for waiver consideration. You may receive a letter notifying you that you’re eligible for a waiver, or you may be asked to complete an online waiver application within your claimant portal.
• Other overpayments: For regular unemployment overpayments, you may need to submit a written waiver request or complete an online form if available in your portal.
• No universal blank form: Some Kentucky waiver workflows have been handled through state-initiated prompts (for example, a pre-filled waiver request sent to certain claimants or a waiver option that appears inside the portal for eligible cases). As noted by Louisville Public Media (2021), this has been described as “invite-only” in some periods—meaning you may need to wait for the agency to issue a waiver notice or activate a waiver link tied to your specific overpayment. If you don’t see a waiver option, follow your determination notice and contact OUI/KCC for the correct submission method.

What to do: Always follow the instructions in your overpayment notice. If your notice says you’re eligible for a waiver and provides a link or instructions, follow those steps. If no waiver option is mentioned, you can submit a written waiver request (see below).

How to Submit the Waiver Form (Portal / Mail / Upload If Applicable)

Depending on your situation, you can submit a waiver request in one of the following ways:

• Online through your claimant portal: If your portal has a waiver request option, complete it online and upload supporting documents.
• By mail: If no online option is available, write a formal waiver request letter (include your name, claimant ID/claim number, and only the last 4 digits of SSN if specifically required, overpayment amount, and a detailed explanation of why you qualify for a waiver). Mail it to the address provided in your overpayment notice, along with all supporting documents. Use certified mail to confirm delivery.
• By fax (if provided): Some notices may include a fax number for submitting documents. Keep proof of transmission.

7. Documents Checklist (What KY Usually Asks For)

To support your waiver request, you’ll typically need to provide documentation proving both that the overpayment was not your fault and that repayment would cause financial hardship. Here’s a comprehensive checklist:

Income Proof (Pay Stubs, Benefit Letters, Bank Statements)

• Recent pay stubs (last 2–3 months) if you’re currently employed
• Unemployment benefit statements (if you’re still receiving UI benefits)
• Social Security, disability, or other benefit award letters (SSI, SSDI, retirement, etc.)
• Bank statements (last 1–2 months) showing all income deposits
• Tax returns (if requested or if you’re self-employed)

Expenses Proof (Rent, Utilities, Medical, Childcare)

• Rent or mortgage statements (lease agreement, mortgage statement, or payment receipts)
• Utility bills (electric, gas, water, internet, phone)
• Childcare expenses (receipts, invoices, or daycare contracts)
• Medical bills or prescription costs (especially if you have chronic conditions or dependents with medical needs)
• Transportation costs (car payment, insurance, gas receipts, or public transit expenses)
• Food and essential living expenses (grocery receipts or budget estimates)

Notice + Determinations

• Copy of your overpayment notice (the letter explaining the overpayment amount and reason)
• Copy of the underlying determination (if the overpayment resulted from an eligibility decision, separation issue, or employer appeal)
• Any correspondence with the Kentucky OUI about the overpayment

Special Circumstances (Dependents, Disability, Eviction Risk)

If any of these apply to your situation, include supporting documentation:

• Dependents: Birth certificates, custody agreements, or school enrollment records for children or other dependents
• Disability: SSI/SSDI award letter, medical records, or doctor’s statement
• Eviction or foreclosure risk: Eviction notice, foreclosure warning, or past-due rent/mortgage statements
• Identity theft: Police report, FTC Identity Theft Report (from IdentityTheft.gov), and any correspondence with the Kentucky OUI about fraudulent claims
• Hardship factors: Any other documentation showing exceptional financial hardship (medical emergency, family crisis, etc.)

Tip: Organize your documents in a logical order (income first, then expenses, then notices and special circumstances). Label each document clearly and keep copies of everything you submit.

8. What Happens After You Apply? (Timeline + Decision)

After you submit your overpayment waiver request, the Kentucky Office of Unemployment Insurance will review your case. Here’s what to expect during the review process:

Processing Time (Varies)

Waiver processing times in Kentucky vary depending on the volume of requests, the complexity of your case, and staffing levels at the Kentucky OUI. In general:

• Pandemic-era waivers: Processing times can vary widely depending on your program type (UI/PUA/PEUC), documentation needs, and current backlog. Check your claimant portal for updates and respond quickly to any requests for information.
• Post-pandemic waivers: Processing can take several weeks to several months. There is no guaranteed timeline.
• What you can do: Check your online portal regularly for status updates. If you haven’t heard anything after 6–8 weeks, call the Kentucky OUI to inquire about your case.

Approved / Partially Approved / Denied

Once the Kentucky OUI makes a decision, you’ll receive a written determination letter. Possible outcomes include:

• Fully approved: Your waiver is granted, and you do not have to repay the overpayment. Any benefit offsets or collection actions related to the waived overpayment should stop. If you already made payments toward the overpayment, the Kentucky OUI may issue a refund (this varies—check your determination letter for details).
• Partially approved: Part of the overpayment is waived, but you’re still responsible for repaying the remaining balance. You can set up a repayment plan for the balance.
• Denied: Your waiver request is denied, and you must repay the full overpayment. See Section 9 below for repayment options and appeal information.

Can You Appeal a Waiver Denial?

Yes. If your waiver request is denied, you have the right to appeal the waiver denial decision. Your determination letter will include instructions on how to appeal, including the deadline (typically 15–30 days from the date of the determination). Follow the appeal instructions carefully and submit your appeal before the deadline.

In your appeal, explain why you believe the waiver should have been granted, provide any additional documentation, and address any reasons given for the denial.

9. Repayment Options if Waiver Is Denied (or While Pending)

If your waiver is denied, or while your waiver is pending, you may need to repay the overpayment. Kentucky offers several repayment options:

One-Time Payment

You can pay the overpayment in full using one of the following methods:

• Online: Visit the Kentucky Career Center Make a Payment page to pay by major credit card or ACH (electronic bank transfer).
• By mail: Send a check or money order to the address provided in your overpayment notice. Include your claimant ID/claim number on the check.
• In person: Contact the Kentucky OUI to inquire about in-person payment options (availability varies).

Installment Plan

If you cannot afford to pay the overpayment in full, you can request an installment plan (also called a payment plan or repayment agreement). To set up an installment plan:

1. Contact the Kentucky OUI: Call the overpayment unit or follow the instructions in your overpayment notice to request a payment plan.
2. Propose a monthly payment amount: Based on your income and expenses, propose a monthly payment you can afford. The Kentucky OUI will review your proposal and may approve it, modify it, or request additional financial documentation.
3. Make payments on time: Once your payment plan is approved, make your monthly payments on time. Missing payments can result in default of the plan and resumption of collection actions.

Keep Proof of Payments

Always keep proof of every payment you make toward your overpayment, including:

• Bank statements showing ACH or online payments
• Credit card statements showing payment transactions
• Canceled checks or money order receipts
• Confirmation emails or receipts from the Kentucky OUI

Keep these records for at least 3–5 years in case of disputes or audits.

10. Can Kentucky Take Future Benefits or Tax Refunds?

If you owe an unemployment overpayment in Kentucky, the state has several tools to collect the debt. Here’s what you need to know:

Benefit Offsets

What it means: If you continue to receive unemployment benefits (now or in the future), the Kentucky OUI may automatically deduct a portion of your weekly payment to repay the overpayment.

How much: The state may withhold a portion of your future benefits to recover the overpayment. Check your overpayment notice for the specific percentage that will be withheld.

What you can do: You usually cannot stop benefit offsets, but you can request a lower offset percentage if it causes hardship. Contact the Kentucky OUI to inquire about hardship adjustments.

State Intercepts (If Applicable Per Notice)

Kentucky may intercept your state tax refund to repay an unemployment overpayment. You will receive advance notice before the intercept occurs, and you have the right to appeal or request a waiver before the refund is taken.

Federal Tax Refund Offset (TOP)

Some unemployment overpayment debts may be collected through the U.S. Treasury Offset Program (TOP), which can offset certain federal payments (including tax refunds) to satisfy eligible debts. If your overpayment is referred for offset, you should receive notice and have an opportunity to dispute or resolve the debt under the instructions provided. Here’s how it works:

• The Kentucky OUI submits delinquent overpayment debts to the U.S. Treasury for collection through TOP.
• If you’re expecting a federal tax refund, the Treasury will intercept all or part of your refund and send it to the Kentucky OUI to repay your overpayment.
• You will receive a notice from the Treasury before the offset occurs, explaining the reason and giving you the right to challenge the offset if you believe it’s incorrect.
• For more information about TOP, visit the U.S. Treasury Offset Program website.

What you can do: If you receive a pre-offset notice, you can request a waiver or payment plan before the offset occurs. You can also dispute the offset if you believe the debt is incorrect or has already been paid.

11. Special Cases (KY)

Identity Theft / Impostor Claim

If someone used your identity to fraudulently collect unemployment benefits in your name, you should not be held responsible for the overpayment. Here’s what to do:

1. Report identity theft immediately: Contact the Kentucky OUI fraud hotline and report that you did not file a claim. Provide any documentation showing you were employed during the weeks in question (pay stubs, W-2, etc.).
2. File a police report: File a report with your local police department and get a copy.
3. File an FTC Identity Theft Report: Go to IdentityTheft.gov and create an Identity Theft Report and Affidavit.
4. Submit documentation to the Kentucky OUI: Provide the police report, FTC report, and any evidence showing you did not file the claim.
5. Request removal of the overpayment: Ask the Kentucky OUI to remove the fraudulent claim and overpayment from your account and clear your record.

Pandemic-Era Overpayments (PUA/PEUC)

Many overpayments occurred during the COVID-19 pandemic due to rapid expansion of federal programs like PUA (Pandemic Unemployment Assistance) and PEUC (Pandemic Emergency Unemployment Compensation). Kentucky has waiver provisions for certain pandemic-era overpayments:

• Automatic review: According to the Kentucky OUI FAQ (PDF), the Kentucky OUI automatically reviews certain pandemic-era claims for waiver eligibility. If you believe you’re eligible but haven’t received a waiver decision, check your portal or contact the Kentucky OUI.
• Senate Bill 140 (2024): This legislation updated Kentucky’s waiver framework for certain pandemic-era, non-fraud overpayments and changed prior deadline provisions. Check your determination notice for the covered dates and deadline that applies to your case.
• Refunds: If your waiver is approved and you already repaid part or all of the overpayment, the Kentucky OUI may issue a refund. Check your waiver determination letter for details.

Bankruptcy (Only Disclaimer + “Consult Attorney”)

Bankruptcy treatment of unemployment overpayments can vary by facts (including whether the debt is tied to fraud) and by court. If you’re considering bankruptcy, consult a qualified bankruptcy attorney or legal aid to review your specific overpayment determination. This guide is not legal advice.

12. Frequently Asked Questions (FAQ)

13. Official Resources & Next Steps

Here are the most reliable official resources for Kentucky unemployment overpayment waiver information and assistance:

Kentucky Unemployment Resources

• Kentucky Career Center (KCC): Main unemployment website for Kentucky.
• KEWES (Kentucky’s Self-Service portal): Access claimant and employer information.
• UI Claims Portal: File claims and weekly certifications (requires ID.me for identity verification).
• Make a Payment (Kentucky Career Center): Check your overpayment balance and make payments online.
• Kentucky OUI Overpayment Waiver FAQ (PDF): Official FAQ document (see PDF header for exact update date).

Federal Resources

• U.S. Treasury Offset Program (TOP): Information about federal tax refund offsets.
• IdentityTheft.gov: Report identity theft and create an Identity Theft Report.
• CareerOneStop — State Unemployment Agencies: Directory of all state unemployment agency websites and contact information.

Legal Assistance

• Legal Services Corporation (LSC): Find free legal aid near you.
• LawHelp.org: State-by-state directory of legal aid organizations and self-help resources.

Related Unemployment Guides

• How to Appeal a Denied Unemployment Claim
• Unemployment Overpayment Waiver Guide (All States)
• Unemployment Extension 2026: Is It Available?

Contact & Get Help

If you need assistance with your overpayment waiver or have questions:

• Kentucky UI Assistance Line: Verify the current phone number on your official notice or the Kentucky Career Center website. (The number 502-564-2900 has been cited by Kentucky legal organizations, but always confirm current contact info on official sources.)
• Email/Portal: Log in to your claimant portal to send secure messages to the Kentucky OUI

Next Steps

1. Read your overpayment notice carefully: Note the deadline, reason, amount, and waiver instructions.
2. Check your overpayment balance: Log in to your Kentucky unemployment portal to see how much you owe.
3. Decide whether to appeal, request a waiver, or both: If you disagree with the overpayment, appeal. If you accept it but can’t repay, request a waiver.
4. Gather documentation: Collect all necessary documents (income, expenses, notices, special circumstances).
5. Submit your waiver request before any deadline: Follow the instructions in your notice and keep proof of filing.
6. Keep certifying for weekly benefits: Continue filing weekly claims if you’re still unemployed to avoid losing future benefits.