TWC denial for 'insufficient wages' between claims - can I count unreported self-employment income?

This is a tricky situation but I've seen people navigate it successfully. TWC does count self-employment income, but you need to have reported it properly on your taxes to use it for UI qualification. Did you file Schedule C with your tax returns for 2023 and 2024 showing this income? If so, you can definitely use that in your appeal.\n\nFor your appeal, gather as much documentation as possible: tax returns, client payments, invoices, a log of work performed, etc. You'll want to be very thorough since you're essentially asking TWC to consider income they don't automatically have record of.\n\nThe key requirement is that you need to have earned at least 6 times your weekly benefit amount from your previous claim during the period after your benefits ended and before your new application. So if your weekly benefit was $300, you need to show you earned at least $1,800 in that period.

Thank you for such a detailed response! I did file taxes and included all my self-employment income on Schedule C for both years. My weekly benefit amount was $385 last time, so I'd need to show about $2,310 in earnings. I definitely made more than that over the 18 months between claims. \n\nDo you know how long the appeal process usually takes? Should I bring physical copies of everything to the appeal hearing?

i went thru the exact same thing last year!!!! worked doordash between claims and twc said no at first. you DEFINTELY need to appeal and bring ALL ur proof. bank statements, venmo, cash app, texts from clients, EVERYTHING. the more the better!!

That's encouraging to hear! Did they accept your DoorDash income when you appealed? How long did the whole process take from when you filed the appeal until you got a decision?

Hey there, I was in a similar situation but with Uber driving income. From what I understand, self-employment CAN count toward the minimum wages needed between claims, but TWC will only accept it if it was properly reported on your taxes, like the first commenter mentioned. Also if you didnt get 1099s from these jobs, they'll look at your bank deposits as evidence. Gather up everything!!!!!

This is correct. A common mistake people make is thinking cash jobs

Thanks for the explanation! Do you think it's worth getting statements from some of my regular clients? I have a few families I babysat for consistently and a couple of homes I cleaned bi-weekly. Would letters from them help my case?

I don't think anyone here is mentioning the REAL problem - TWC is so backed up right now that even IF you file an appeal, you'll be waiting MONTHS to even get a hearing date!! I filed an appeal for a similar issue in February and still haven't gotten a hearing scheduled. The system is COMPLETELY BROKEN and they don't care at all about people struggling!!

I know the wait can be frustrating, but in my experience, if you need to contact TWC directly about your appeal or claim status, Claimyr has been incredibly helpful. I was stuck in appeal limbo for weeks until I used their service at claimyr.com to get through to an actual TWC agent. They connected me within about 20 minutes versus the days of redialing I was doing on my own. There's a good video showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh\n\nThe agent I spoke with was able to check on my appeal status and even expedited it because of my financial hardship. Might be worth looking into while you're gathering your documentation.

wait i'm confused... if you did odd jobs why didn't u just report that income weekly to TWC during your claim period instead of waiting til now?? aren't u supposed to report ALL income when claiming?

I think you misunderstood my situation. I was on unemployment April-October 2023. After my benefits ended in October 2023, I did odd jobs and self-employment work until April 2025 when I filed a new claim. TWC is saying I didn't earn enough during that 18-month period between claims to qualify for a new claim. I wasn't trying to hide income during my previous claim period.

oh ok my bad, i get it now!

Based on your situation, here's what you need to know about the appeal process:\n\n1. File your appeal within 14 calendar days of receiving the determination letter\n\n2. Specifically for self-employment income, TWC will need:\n - Tax returns with Schedule C for 2023 and 2024\n - Proof of payments (bank statements, Venmo, etc.)\n - Evidence of actual work performed (communications with clients)\n - A detailed log of jobs, dates, and amounts earned\n\n3. You'll need to show you earned at least 37-40% of your previous base period wages in the new base period. This is in addition to the 6x weekly benefit amount requirement.\n\n4. Prepare a clear written statement explaining your work situation during the gap period\n\nOne thing that often helps is organizing your documentation chronologically and creating a summary sheet that shows all your earnings by month. This makes it much easier for the hearing officer to verify you met the requirements.

This is super helpful! I just checked my determination letter again and it says I need to show earnings of at least $4,620 in my new base period (which I think should be from January 2024 to December 2024). I definitely made more than that with my odd jobs, but it's spread across a lot of different clients and payment methods. I'll start organizing everything chronologically like you suggested.

also check ur mail EVERYDAY becuz TWC sends the hearing notice and if u miss the hearing date ur screwed!! happened to my cousin

THIS!!! They sent my hearing notice to my OLD address even though I updated my address in the system THREE TIMES! Then they claimed I \

Something else to consider - while you're waiting for the appeal, make sure you're still doing your work search activities and documenting them. If your appeal is successful, TWC may require you to show that you were actively searching for work during the waiting period to receive retroactive benefits. The current requirement is 3 work search activities per week in most Texas counties.

Oh that's a good point! I'm already applying to jobs but wasn't tracking them formally. I'll start documenting everything right away. If my appeal is successful, would I need to submit all the payment requests for the weeks I missed while waiting for the appeal decision?

Yes, if your appeal is successful, you'll need to submit payment requests for those missed weeks. TWC will usually provide instructions on how to do this once your appeal is approved. Keep track of everything in the meantime!

i had a situation kinda similar but with uber eats money and they ended up accepting it during appeal but it took foreverrrrr like almost 3 months from start to finish just be prepared for the wait

I want to add something important that I don't think has been mentioned yet - make sure you have your Social Security earnings record handy when you go to your appeal hearing. You can request it online from the SSA website and it shows all your reported earnings by quarter. This will help demonstrate that your self-employment income was properly reported and paid taxes on. Also, if you used any business banking accounts or payment processors like Square or PayPal for your cleaning/babysitting work, those transaction records can be really valuable evidence since they show a pattern of legitimate business income rather than just random cash payments. One more tip - when you're organizing your documentation, create a simple spreadsheet that totals your earnings by month and quarter. This makes it much easier for the hearing officer to see that you clearly exceeded the minimum requirements. Good luck with your appeal!

I just went through a very similar situation last year and won my appeal! The key is being super organized with your documentation. Since you already filed Schedule C, you're in a much better position than people who didn't report their self-employment income at all. Here's what worked for me: I created a monthly breakdown showing all my gig work earnings (DoorDash, house cleaning, pet sitting) with supporting documents for each month. I included bank deposits, payment app screenshots, client communications, and even photos of completed work when I had them. The hearing officer was most impressed by my detailed income log that showed consistent work activity throughout the gap period. Make sure you emphasize that you were actively working and paying taxes on this income - it wasn't under-the-table cash work. Also, don't stress too much about the timeline. My hearing was scheduled about 6 weeks after I filed the appeal, and I got my decision within a week of the hearing. Once approved, I was able to backdate and claim all the weeks I had missed. Just keep doing your work searches in the meantime so you're ready to claim those weeks if you win! You've got this - having your taxes properly filed puts you way ahead of most people in similar situations.

I'm going through something very similar right now! I was denied for the same reason after doing freelance graphic design work between claims. One thing I learned from my research is that you should also request a copy of your "wage and benefit determination" letter if you haven't already - it will show exactly which quarters TWC counted and which ones they didn't. From what I've gathered, TWC sometimes misses self-employment income even when it's properly reported because their system doesn't automatically pull from Schedule C filings. That's why the appeal process exists - to manually review cases like ours where legitimate income wasn't initially counted. I'd also recommend calling your local workforce office if possible. Sometimes they can walk you through exactly what documentation they need for your specific situation. The wait times are brutal, but I found calling right when they open (usually 8 AM) gives you the best chance of getting through. Keep us updated on how your appeal goes - there are probably lots of people in similar situations who could benefit from knowing the outcome!

Hey Anita! I just wanted to chime in with some encouragement - I went through almost the exact same situation about 8 months ago. I had been doing freelance bookkeeping and tax prep work between claims, all properly reported on Schedule C, but TWC initially denied me for insufficient wages. The good news is that your situation sounds really strong since you have your tax filings in order. A few things that really helped my case: 1. I created a simple one-page summary showing my total earnings by quarter, making it super easy for the hearing officer to see I exceeded the requirements 2. I brought printed screenshots of ALL my payment apps (Venmo, Zelle, PayPal) organized by month 3. I included a brief letter explaining that I chose gig work to maintain income while actively job searching for permanent employment My hearing was scheduled about 7 weeks after filing the appeal, and the whole thing was pretty straightforward. The hearing officer mostly just wanted to verify that the income was legitimate work (not gifts or loans) and that I had properly reported it for taxes. Since you did both of those things, you should be in good shape! One last tip - make sure you file that appeal ASAP since you only have 14 days from your determination letter date. The sooner you get it in, the sooner you can get your hearing scheduled. Hang in there!

Just wanted to add one more resource that might be helpful - if you're struggling financially while waiting for your appeal, look into local food banks and utility assistance programs. Many counties in Texas have emergency assistance specifically for people dealing with unemployment claim delays. Also, consider reaching out to your state representative's office. They often have caseworkers who can help escalate TWC issues when people are facing genuine hardship. I've heard of cases where this helped speed up the appeals process, especially when someone can demonstrate they're at risk of eviction or losing utilities. The documentation everyone has mentioned is spot-on - your Schedule C filings are going to be your strongest evidence. Since you properly reported everything, you're in a much better position than people who tried to claim unreported cash income. One thing I haven't seen mentioned - if you have any regular clients who can write brief letters confirming the work you did and approximate dates, that can really strengthen your case. It shows the hearing officer that this was legitimate, ongoing business activity rather than just occasional odd jobs. Stay strong and keep advocating for yourself. The system is frustrating but your situation sounds very winnable!

I'm dealing with a very similar situation right now and this thread has been incredibly helpful! I was denied for insufficient wages after doing various gig work (Instacart, pet sitting, and some consulting) between my claims. One thing I wanted to add that might help others - when you're gathering your documentation, don't forget about any 1099-NECs you might have received. I got a few from clients who paid me over $600, and those are direct proof of reported income that TWC should easily be able to verify. Also, if you used any business expense tracking apps like MileIQ or Stride during your gig work period, those can help show the legitimate business nature of your activities. I know it might seem like overkill, but every piece of documentation helps paint the picture that this was real work, not just casual side income. The stress of waiting for an appeal is awful, but reading all these success stories is giving me hope. Anita, it sounds like you have a really strong case with your Schedule C filings and the amount you earned. Keeping my fingers crossed for both of us!