TWC overpayment taxes - Do I report on my return if I repaid benefits?

You'll need to look at which tax year we're talking about here. If you received the benefits in 2024 and are repaying in 2025, you have two options: 1. You can claim a deduction for the repaid amount on your 2025 tax return (Schedule A as a miscellaneous itemized deduction) 2. If the repayment is over $3,000, you might qualify for a special tax credit calculation that could be more beneficial The IRS calls this a "claim of right" issue. Publication 525 covers this, but it's confusing. You definitely don't want to just ignore the 1099-G amount - the IRS will notice since TWC reports it to them.

something similar happened to my brother last year!!! he had to pay back like 2000 and the tax guy told him he couldnt do anything about it until he paid it ALL back. so unfair. the whole system is designed to screw us over tbh

CALL TWC AND DEMAND AN AMENDED 1099-G!!!! They are REQUIRED to fix this!!! I had the same issue in 2023 and had to call them 57 TIMES before getting through but they finally sent me a corrected form that only showed what I actually kept after repayments. DON'T LET THEM GET AWAY WITH THIS!!!

I recommend using tax software like TurboTax or H&R Block for this situation since it gets complicated. They'll walk you through reporting the 1099-G income and then guide you on how to claim the deduction for repaid benefits. The software should ask if you repaid any unemployment benefits and help calculate which method gives you the best outcome. Also, make sure you keep all documentation of your repayments to TWC just in case you get audited. Print out payment confirmations or bank statements showing the repayments.

There's a specific approach you need to take here as others have mentioned. This is actually covered in IRS Publication 525 under "Repayments": 1. If your repayment was in the same year as you received the benefits, you'd just report the net amount (but that's not your case) 2. Since you received benefits in one year and are repaying in the same/subsequent years, you have two options: - Take an itemized deduction on Schedule A (subject to the 2% AGI floor) - If repayment exceeds $3,000, you can take a credit calculated under Section 1341 The second option is often more beneficial but more complex. If you're using tax software, look for options related to "repayment of income" or "claim of right" - not everyone knows to look for this, which is why many people end up overpaying.

i had the exact same thing happen and tried for WEEKS to get help from twc about the tax situation. kept getting busy signals or disconnected after waiting on hold for an hour. a friend told me about a service called claimyr that got me connected to a twc agent in like 10 minutes. they have a video showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh the agent explained that i needed to handle it on my tax return not through twc. website is claimyr.com if you need to actually talk to someone at twc about your specific situation.

Here's what you need to know about the tax implications of TWC overpayments: 1. Report the full amount from the 1099-G on your tax return 2. If you repaid any amount in the same tax year you received it, you can exclude that portion from your income 3. For amounts repaid in a later tax year, you can claim either: - An itemized deduction on Schedule A (if you itemize) - A tax credit calculation if your repayment exceeds $3,000 (potentially better) 4. If you use tax software, look for "repayment of income previously reported" or similar phrasing Also, make sure you contact TWC for a statement documenting all your repayments - this will be crucial for your tax records.

Im dealing with this right now also! Suuuper frustrating. I got hit with a $5,200 overpayment because my employer reported different wages than what I told TWC (I honestly didn't know the exact amounts when I applied). My tax guy said I have to report the full 1099-G amount this year, then next year I'll get some kind of deduction for what I paid back. Doesn't seem fair but that's what he told me.

Has anyone had any luck getting an installment plan from TWC that doesn't completely drain your bank account every month? They want me to pay $275/month which I CANNOT afford right now with inflation and everything else going up!