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Forgot to report severance pay on TWC payment request - will this cause problems?

So I just got laid off from my marketing job last month and I'm navigating the unemployment system for the first time. I submitted my second payment request today and realized I totally messed up - I forgot to include my $5,800 severance payout in the "extra income" section! My mind has been scattered with everything going on. I just received my first unemployment payment last week ($625) and now I'm panicking that I'll get flagged for fraud or something because of this mistake. I plan to call TWC first thing tomorrow morning, but does anyone know what might happen? Will they make me pay back benefits? Will my claim get frozen? I'm already stressed about bills and don't want to make things worse by making stupid mistakes on forms.

Liam Brown

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Don't panic! This is a common mistake and you're doing the right thing by calling TWC to correct it. When you call, tell them it was an honest error and you want to report the severance payment. They'll likely adjust your benefits for the affected payment period. Severance pay is considered disqualifying income, meaning it reduces or eliminates benefits for the period it's paid, depending on the amount. Since you're planning to self-report before they catch it, they'll likely just recalculate without penalties. Make sure you have documentation of your severance amount ready when you call. You might need to pay back some money if the severance would have reduced your eligible amount for that period.

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Emma Johnson

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Thank you, that makes me feel a bit better. Do you think this will affect all my future payments or just the one I just requested? My severance was a one-time payment.

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Olivia Garcia

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OMG I did the EXACT same thing last year!!! I got a $3,000 severance and completely blanked on reporting it. I was so worried!

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Emma Johnson

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What happened in your case? Did they penalize you or was it easy to fix?

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Olivia Garcia

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They ended up sending me an overpayment notice about 3 weeks later. I had to pay back what I got for that period. But since I called them right away when I realized (like you're planning to), they didn't charge me any penalties or interest. Just had to return the money I shouldn't have gotten that week.

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Noah Lee

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This is actually INCORRECT information! Severance pay is treated differently than regular wages. The TWC has specific rules about how severance impacts your benefits and it depends on how it was paid out, what your benefit amount is, and even what industry you worked in. I've seen people have their entire claims rejected because of severance issues. The system is BROKEN and designed to confuse people!

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Ava Hernandez

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The previous responses are partially correct, but let me clarify how TWC handles severance pay specifically: 1. Severance pay is considered disqualifying income for the period it's allocated to 2. If it's a lump sum, TWC typically allocates it based on your previous weekly salary 3. For example, if you earned $1,000/week and got $5,800 severance, they'd consider you ineligible for about 5-6 weeks of benefits Since you've already received one payment and are on your second request, you need to call TWC and explain the situation. They'll recalculate your benefit eligibility period and likely issue an overpayment notice for any weeks you weren't eligible due to the severance allocation. Be prepared with: - Exact severance amount - Date received - Your previous weekly salary - Any documentation showing the severance payment Honestly reporting the mistake promptly will help avoid fraud allegations. This happens frequently, and TWC has processes to handle it.

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Emma Johnson

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Thank you for the detailed explanation. So it sounds like I might have to wait several weeks before I can actually receive unemployment benefits because of the severance? That's going to be tough financially.

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Isabella Martin

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my cousin had this happen and they made him pay back evrything plus a penelty lol good luck

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Liam Brown

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That's not helpful and probably not accurate for this situation. If someone intentionally commits fraud, yes, there are penalties. But when someone makes an honest mistake and self-reports it quickly (like OP is doing), TWC typically just recalculates the benefits without penalties.

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Elijah Jackson

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I've been helping people with TWC issues for years, and forgotten severance reporting is actually pretty common. Here's what will likely happen: 1. When you call tomorrow, you'll probably get endless busy signals and frustration trying to reach someone 2. Once you do reach a person, they'll create an 'issue' on your claim for the unreported income 3. Your payments may be temporarily paused until they resolve the issue 4. They'll send you a determination letter explaining how your severance affects your benefits 5. You'll likely need to repay any benefits you weren't eligible for during the severance allocation period If you're struggling to get through to TWC (which is almost guaranteed), I'd recommend using Claimyr. It's a service that helps you get through to an actual TWC agent without spending hours hitting redial. I used it when my claim had issues and got through in about 20 minutes instead of days of trying. You can see how it works at claimyr.com or watch their demo at https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh - it saved me so much frustration.

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Olivia Garcia

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I was about to suggest this too! I used this service when I had my overpayment issue. Otherwise I would have been on hold forever. It was weird giving my number to a third party at first but it actually worked.

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Sophia Miller

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Am I the only one confused about why severance even counts against unemployment? I mean, you LOST YOUR JOB! The severance is supposed to help you while you look for work, not make you ineligible for benefits you paid into while working! The whole system is ridiculous.

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Ava Hernandez

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I understand the frustration, but the logic is that unemployment is meant to replace lost wages. Since severance is essentially continuing your salary for a period after termination, the system views it as if you're still being paid by your employer for that period. It's not perfect, but that's the rationale behind it.

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Emma Johnson

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Update: I finally got through to TWC after trying all morning! The agent was actually really nice about it. She said my severance will be allocated over about 7 weeks based on my previous salary, so I won't be eligible for benefits during that time. But here's the good news - since I reported it myself before they caught it, they're not considering it fraud or applying any penalties. I will have to pay back the first payment I already received though. They're sending me a determination letter with all the details. Thanks everyone for your help and keeping me from panicking too much!

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Liam Brown

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That's great to hear! Glad you got it resolved and there weren't any penalties. This is typically how TWC handles self-reported mistakes. Just make sure to follow the instructions in the determination letter about repayment, and you should be back on track to receive benefits after the severance allocation period ends.

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Olivia Garcia

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Did they tell you how to pay back the money? Do u have to write a check or can you do it online?

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Emma Johnson

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They said the determination letter will have instructions for repayment options. I think you can pay online through the TWC portal or send a check. I'll know more when I get the letter in a few days.

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