TWC W-2 showing overpayment I already repaid - help with tax reporting
So frustrated with TWC right now! I just got my unemployment tax documents for 2025 and there's a major problem. Last spring, TWC paid me benefits ($3,200) while my case was still being reviewed, then later determined I wasn't eligible and demanded the money back. I repaid the entire amount in July, and they even sent me a confirmation letter acknowledging the repayment. But now my W-2G form from TWC shows the full benefit amount without reflecting my repayment! It's like I'm being taxed on money I didn't actually keep. Has anyone dealt with this before? Do I need to file an amended W-2? Call the IRS? I called TWC three times but keep getting disconnected after waiting 45+ minutes. Tax deadline is approaching and I'm panicking!
18 comments
Anna Xian
Ugh, TWC does this EVERY YEAR to someone! The form you received is actually a 1099-G (not a W-2G which is for gambling winnings). You need to request a CORRECTED 1099-G from TWC that shows the net amount after repayment. Don't file your taxes with the incorrect form or you'll pay taxes on money you didn't keep! Save that repayment confirmation letter - you'll need it as proof.
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TillyCombatwarrior
•Thank you! You're right, it is a 1099-G, not a W-2G (I'm clearly losing my mind over this). So I need to specifically ask for a corrected form? The TWC website doesn't seem to have any option for this, and I can't get through on the phone.
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Jungleboo Soletrain
Been there! Honestly getting through to TWC is the hardest part. After spending DAYS trying to reach them about my corrected 1099-G last year, I found Claimyr (claimyr.com) and it actually worked! They have this system that gets you through to TWC agents without the endless busy signals. They have a video demo showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh. I was skeptical but desperate, and got connected to TWC in about 20 minutes instead of days of redialing.
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Rajan Walker
•does this claimyr thing actually work? seems fishy to me tbh
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Jungleboo Soletrain
•Yeah, it definitely worked for me. It's just a call system that keeps dialing for you and alerts you when you're connected. Better than wasting my whole day hitting redial! For tax document issues like this, getting through quickly is worth it.
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Nadia Zaldivar
Former tax preparer here. You have several options: 1. Best option: Get a corrected 1099-G from TWC that shows the net amount (what you received minus what you repaid) 2. Alternative option: Report the full amount shown on the 1099-G on line 7 of Schedule 1 (Form 1040), but then also report the repayment as a negative amount and write "REPAID" next to it. 3. Last resort: Report the full 1099-G amount, then deduct the repayment as an itemized deduction on Schedule A (but this only works if you itemize deductions rather than taking the standard deduction). But definitely try to get the corrected form first - that's the cleanest solution.
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TillyCombatwarrior
•Thank you soooo much for this detailed explanation! I'll definitely try to get the corrected form first. If I have to go with option 2, will tax software like TurboTax allow me to enter a negative amount on that line?
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Nadia Zaldivar
•Most tax software does allow this, but you may need to look for a special section for "repayment of previously taxed income" or something similar. Some programs have a specific worksheet for this scenario. If you get stuck, the help section should guide you through it.
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Lukas Fitzgerald
dude ur lucky u even got thru to twc to do the repayment!!! ive been trying to reach them for 3 weeks about my determination letter and cant get anything but busy signals
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Jungleboo Soletrain
•Try calling right when they open at 7:00am or use their callback feature on the portal (though that can take days). The afternoons are completely hopeless.
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Ev Luca
I had EXACTLY the same problem last tax season and it was a nightmare! TWC is so incompetent with these overpayment situations. The customer service rep told me they're supposed to automatically issue corrected 1099-Gs, but their system often fails to do it. I had to submit a formal written request for a corrected form through their tax document department. Took about 3 weeks but they finally sent the correct one. Make sure you keep records of EVERYTHING - all payments, confirmation numbers, and that repayment letter. The IRS might also want these documents.
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TillyCombatwarrior
•This is really helpful - do you remember what information you included in your written request? And did you mail it or submit it through the portal somehow?
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Ev Luca
•I submitted it through the portal's messaging system. Make sure to include: 1) Your full name, 2) Last 4 of your SSN, 3) Claim ID number, 4) Date and amount of repayment, 5) Confirmation/reference number of your repayment. Also attach a scan of that repayment confirmation letter if you can. Title it "REQUEST FOR CORRECTED 1099-G DUE TO OVERPAYMENT REPAYMENT" so it gets routed correctly.
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Avery Davis
isnt it up to the irs not twc? maybe u should ask them
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Nadia Zaldivar
•No, TWC is responsible for issuing the correct 1099-G form since they're the ones who paid the benefits. The IRS just receives the information TWC reports. TWC needs to correct their reporting by issuing a corrected form.
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Anna Xian
One more thing - check if you repaid the money in the same calendar year you received it. If you got the benefits and repaid them within 2025, then the 1099-G should show the net amount. If you got the benefits in 2024 but repaid in 2025, things get more complicated and you may need to use the "claim of right" doctrine when filing. Something to ask about when you reach TWC.
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TillyCombatwarrior
•Both the payment and repayment were in 2025, so hopefully that simplifies things. Received payments in March/April and repaid in July.
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Anna Xian
•That's good news! In that case, TWC definitely should issue a corrected 1099-G showing only the net amount you actually kept. Be persistent!
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