TWC says I have no base period earnings - Can self-employment income count for unemployment?

Unfortunately, TWC generally only counts W2 wages for regular unemployment benefits. Self-employment income usually doesn't count toward your base period earnings unless you were paying yourself as a W2 employee through your business (like if you had an S-Corp and took a salary). Were you filing Schedule C as a sole proprietor or did you have a different business structure?

same boat last year! it SUCKS. the system is designed for regular employees not business owners who take a job then lose it. total bs if u ask me

The previous responses are correct - self-employment income reported on Schedule C doesn't count toward base period wages for TWC unemployment eligibility. The base period is typically the first four of the last five completed calendar quarters before you apply, and only includes W2 wages reported by employers. However, you might have a couple options: 1. If you had any W2 employment during the base period (even part-time) before your business, check if those wages might qualify you 2. If you worked in another state before Texas, you might be able to file a combined wage claim 3. File an appeal explaining your situation - while the chances are slim, occasionally TWC makes exceptions or can direct you to other assistance programs I'd recommend calling TWC directly to discuss your specific situation. Their regular lines are nearly impossible to get through, but I found Claimyr (claimyr.com) really helpful - they have a system that connects you directly to TWC agents without the endless busy signals. They show exactly how it works in their video demo: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh

The whole system is designed to EXCLUDE self-employed people!!! I went through this EXACT situation in 2023. Had my own business for 5 years, took a corporate job for 6 months, got laid off, and TWC said I didn't qualify!!! ABSOLUTELY INFURIATING!!! They don't care that you were working and paying taxes the whole time!!!!

did u have an llc or were u just doing business as urself? my brother had this problem but he had an s-corp and was paying himself a small salary with w2 so he qualified for a tiny benefit amount.

I worked at TWC for 6 years, and unfortunately, self-employment income cannot be used for qualifying for unemployment benefits. The unemployment insurance system is designed as an employer-funded safety net, where employers pay taxes into the UI fund based on their payroll. Since you weren't paying unemployment taxes on your self-employment income, those earnings can't be used to establish a claim. If you had a corporation and paid yourself W2 wages (with unemployment taxes), that would count. But Schedule C income doesn't qualify regardless of how much you earned or taxes you paid. If you're within your base period with your new W2 job, you might need to wait until you have enough quarters of W2 employment to qualify. Each state has different minimum earnings requirements.

Have u tried explaining ur situation to an actual person at TWC? Sometimes they can make exceptions or point u to other programs when u don't qualify for regular unemployment. But good luck getting someone on the phone lol

this is why i always tell people to setup their business as an s-corp if they think theyll ever need unemployment! too late for u now but for anyone else reading this... pay yourself some w2 wages from your business so u qualify for benefits if u ever need them! learned this the hard way myself

While you probably won't qualify for regular unemployment, you might want to check if Texas has any self-employment assistance programs. Some states offer grants or other support for former business owners. Also, if your income has dropped significantly, look into other assistance programs like SNAP benefits or emergency assistance programs while you get back on your feet.

maaaan this is why the system is broken! ppl working and paying taxes but can't get help when they need it. sorry ur dealing with this bs