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TWC denied my claim for unreported Lyft earnings - can I appeal?

I just got a determination letter saying I'm ineligible for unemployment benefits because I didn't report income from Lyft driving. Honestly, I didn't think I needed to report it since I was only making like $85-90 a week at most, and I only drove when I was really desperate for cash between job interviews. The letter says I have to pay back $4,200 in benefits that I received over the past two months! Can I appeal this decision? I wasn't trying to commit fraud - I genuinely didn't understand that side gig money under $100/week needed to be reported. I'm freaking out because I've already spent that money on rent and bills while looking for full-time work. Has anyone successfully appealed something like this? What are my chances?

Aiden Chen

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Yes u have to report ANY income no matter how small when claiming benefits. TWC considers that fraud when u don't report income. Even like $20. You shoulda read the instructions better when filing!!

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Thanks for the helpful lecture... I already know that NOW. I'm asking about the appeal process and if there's any chance of winning.

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Zoey Bianchi

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You definitely can appeal, and you should do it right away! The appeal deadline is 14 days from the date on your determination letter. Your appeal should explain that you didn't understand the reporting requirements for gig work and that you weren't intentionally trying to defraud the system. They do sometimes show leniency for honest mistakes, especially if it's your first time on unemployment. Make sure to include documentation showing exactly how much you earned from Lyft each week. The TWC might reduce the overpayment to reflect the correct partial benefit amount you would have received (instead of treating it as a complete denial). Good luck!

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Thank you so much for this explanation! I'll start gathering my Lyft payment statements today. Do I need to keep requesting payments while my appeal is pending?

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Zoey Bianchi

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Yes, absolutely continue making your payment requests while your appeal is pending. If you stop, it could negatively impact your case. Just make sure you're now reporting ALL income correctly, including your Lyft earnings.

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i had kinda similar situation except with doordash. they said i was overpaid like $3200 but i appealed and they reduced it to like $1800 because they recalculated what i shoulda got with partial benefits. still sucked but better than nothing

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The TWC is absolutley BRUTAL with these gig worker situations! They know perfectly well most people don't understand how to report this income correctly but they do NOTHING to make it clear in their instructions. Then they hit you with these massive overpayment notices months later when you've already spent the money!!! I had a similar situation with Instacart work. Definitely appeal and explain it was an honest mistake. The worst part is trying to get through to someone at TWC to explain your situation before the appeal. I spent DAYS trying to reach them on the phone.

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Grace Johnson

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Same. Spent 3 days straight calling and just getting busy signals or disconnected after waiting an hour. So frustrating!

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Jayden Reed

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Try Claimyr if you're struggling to reach TWC. It got me through to a rep in about 20 minutes after I spent days trying on my own. They have a video demo that shows how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh and their website is claimyr.com. Totally saved me when I was dealing with my appeal for unreported income from a side job. The TWC agent I spoke with was actually really helpful once I finally got through.

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Thanks for the suggestion - I'll check out that service. At this point I'll try anything to talk to an actual person about my situation.

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Nora Brooks

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This is actually a really common mistake people make with rideshare and delivery gigs. When you file your appeal, make sure you emphasize that you didn't understand the reporting requirements specifically for gig work (which is honestly confusing for many people). The TWC might classify this as a non-fraud overpayment if they believe it was an honest mistake. If your appeal is successful but you still have an overpayment, you can request a payment plan or even an overpayment waiver if repaying would cause financial hardship. In my experience working with clients in similar situations, about 40% get some form of relief through the appeal process. Do you have your determination letter in front of you? There should be a specific reason code that's important for your appeal strategy.

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The code on my letter says something like "040 - Failure to report earnings." It also mentions something about Section 207.076 of the Texas Unemployment Compensation Act. I'll definitely emphasize that I didn't understand how gig work reporting worked - that's absolutely true. Thank you for giving me some hope that this might work out!

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Eli Wang

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One time I forgot to report income from a one day job I did and TWC said I committed fraud lol. Had to pay back $400 and my claim was locked for like 3 weeks. Anyway just wondering did they catch this because Lyft reported your earnings to them or did you tell them about it? Because I've heard TWC has gotten way more aggressive about checking with gig companies for unreported income in 2025.

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I think they must have gotten info from Lyft directly because I never told them. The determination letter mentioned something about "income cross-matching" so I'm guessing they're checking with these companies automatically now.

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Eli Wang

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Yep thats what I thought. They're doing that with all the app companies now. Uber, Doordash, all of them report to TWC automatically I think.

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Nora Brooks

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When you file your appeal, remember to submit it in writing and keep a copy of everything. You can submit through the TWC portal or by mail, but the portal is faster. In your appeal letter, I'd recommend: 1. Clearly stating you misunderstood the reporting requirements for gig work 2. Providing exact amounts earned each week from Lyft (with documentation) 3. Requesting that they recalculate your benefits as partial payments rather than denying eligibility entirely 4. Mentioning that this was your first time on unemployment and that you'll correctly report all income going forward If your appeal hearing is conducted by phone, be extremely prepared with all your documentation organized. Answer questions directly and honestly. Don't get defensive even if the hearing officer seems accusatory - that's just part of their job.

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This is incredibly helpful advice! I'll follow all of these steps. Do you know approximately how long it takes from filing the appeal to having the hearing?

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Nora Brooks

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Currently, the TWC is scheduling appeal hearings about 5-7 weeks after filing. It used to be faster, but they've been backlogged since the beginning of the year. Just keep making your payment requests (reporting all income correctly) while you wait.

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Did you finally get through to anyone at TWC yet? Curious if Claimyr worked for you because I'm in a similar situation with unreported income (mine was from tutoring).

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I actually did use Claimyr yesterday and got through to someone in about 30 minutes! The TWC rep confirmed I can appeal and said to make sure I include ALL my Lyft earnings documentation with specific dates. She said they're seeing a lot of these cases with gig workers and that honest mistakes can sometimes get the fraud designation removed, which lowers the penalty. I've already filed my appeal through the portal with all my documentation attached.

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