TWC taking payments for IRS offset AFTER they already collected - should I call TWC?
I'm super confused and stressed out about my overpayment situation. The IRS already took my tax refund in March to pay off my TWC overpayment from 2023 (about $4,200). I thought that was the end of it. But when I filed for unemployment again last month and got approved, my first payment request from last week just disappeared! When I logged into my TWC account, I can see they're STILL showing an overpayment balance and they took my new unemployment payment too! This makes no sense - they already got their money through the tax offset! Now I'm sitting here with no payment and bills coming due. Has anyone dealt with this double-dipping situation? Should I call TWC? I've tried twice already but can't get through their phone lines. I'm getting desperate here.
21 comments
Victoria Scott
Yes, you absolutely need to call TWC about this. What's likely happening is that their system hasn't been updated to reflect the IRS offset payment. This happens more often than you'd think - the IRS and TWC systems don't communicate in real-time. The overpayment will continue to show on your account and they'll keep offsetting your benefits until their system recognizes the debt has been paid. Make sure you have documentation of the IRS offset (check your tax transcript or offset notice) when you speak with them. You'll need to specifically ask for the Benefit Payment Control (BPC) department as they handle overpayments and offsets.
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Ezra Collins
•Thanks for the info! I didn't know about the BPC department. I do have my IRS paperwork showing the offset. But getting through to TWC is IMPOSSIBLE lately - I've called over 20 times this week alone!
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Benjamin Johnson
this happened to my cousin last year!! they took his tax refund AND 6 weeks of unemployment before he could get someone to fix it. the left hand doesnt know what the right hand is doing over there smh
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Ezra Collins
•SIX WEEKS?? I can't wait that long! Did he eventually get back the unemployment payments they took?
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Benjamin Johnson
•yeah but it took like 2 months total to get the money back. he had to keep calling and calling
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Zara Perez
You're dealing with a system coordination issue. When the IRS takes your tax refund for a TWC offset, it can take 30-45 days for TWC to process and apply that payment to your account. During that processing time, your TWC account will still show the overpayment and they'll continue to offset any new benefits. You have two options: 1. Keep trying to call TWC directly and explain the situation. Ask specifically for the overpayment department. 2. You can also submit this issue through your TWC correspondence inbox online. Upload your IRS offset documentation and explain clearly that you believe your overpayment was already collected through tax refund offset. Don't stop requesting payments during this time - if they determine you're correct, they should release any withheld funds.
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Ezra Collins
•Thank you for the detailed explanation! I didn't realize there was such a long processing time. I'll try the correspondence inbox route today and upload my IRS documents.
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Daniel Rogers
TWC IS THE WORST!!!! They did the same thing to me in January and I couldn't pay my rent because of it. They say one thing and do another. I'm still fighting with them over MY MONEY that they took TWICE!!!! 😡😡😡
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Aaliyah Reed
•This isn't actually uncommon due to system delays between federal and state agencies. It's frustrating, but it's typically resolved once the proper documentation is provided. Have you submitted your IRS offset notice through the correspondence portal?
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Daniel Rogers
•YES I SENT IT THREE TIMES!!! Still waiting for someone to actually DO SOMETHING about it! Meanwhile they took 5 weeks of my benefits!!
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Aaliyah Reed
I worked with TWC for 8 years, and this is a common issue. Here's what's happening: when an IRS tax refund is intercepted for a TWC overpayment, the Treasury Department sends those funds to TWC, but it takes 4-6 weeks for TWC to process and apply those funds to your account. During that time, your account still shows the overpayment. Most importantly: You need to contact TWC's Benefit Payment Control unit directly. Regular TWC call center agents don't have the authority to resolve offset issues. Call 512-463-2999 specifically for overpayment issues. When you call, have this information ready: 1. Your IRS offset notice showing the amount taken 2. The date of the offset 3. Your TWC claim ID They can verify the payment is in process and potentially release your current benefits while the offset payment processes.
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Ezra Collins
•This is extremely helpful! I didn't know about that specific number for overpayment issues. I'll try calling them tomorrow morning. Really appreciate the insider knowledge!
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Ella Russell
I went through this exact nightmare scenario back in February. Couldn't get through on the phone for 2 weeks straight - busy signals or disconnects every time. I finally used Claimyr (claimyr.com) to get through to a TWC agent after wasting hours trying on my own. They got me connected in about 20 minutes and I got the whole thing sorted out in one call. You can see how it works in their video demo: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh The agent explained that my IRS offset was still in their processing queue and released my current benefits while they sorted it out. Definitely worth considering if you're in a time crunch with bills due.
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Ezra Collins
•I've never heard of this service but I'm desperate at this point. Did they actually fix your offset issue in that one call? I'm worried about paying for a service and still not getting my problem fixed.
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Ella Russell
•Yes, they fixed it on that call. The key was getting to the right department (Benefit Payment Control). The agent confirmed they received my offset payment from IRS but it was sitting in their processing queue. They put a note on my account to stop taking my current benefits while they applied the offset payment.
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Mohammed Khan
i had a similar issue last summer except it was child support offset not IRS. TWC kept taking my unemployment for an overpayment even tho they already got the money from my ex husbands tax return. it took me weeks to get it fixed!! when i finally got thru to someone they told me theres no communication between the departments and i had to prove the money was already taken. its completly ridiculus that we have to chase them down for OUR MONEY!!! good luck!!
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Victoria Scott
Another important point: make sure you continue to request payments on your regular schedule while this gets resolved. I've seen many cases where people stop requesting payments during an offset dispute, which creates a whole new problem. Even if the payments are being intercepted for the overpayment, you need to maintain your claim by continuing your payment requests and work search activities. Once TWC confirms the IRS offset has satisfied your overpayment, they should retroactively release any benefits that were withheld during this period. But if you stop requesting payments, they can't retroactively pay what wasn't requested in the first place.
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Ezra Collins
•Thanks for the reminder - I nearly missed my payment request today because I was so frustrated! Just completed it even though I'm worried they'll just take it again. Keeping my fingers crossed I can get through to someone who can help soon.
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Zara Perez
One more thing to be aware of: sometimes the IRS offset doesn't fully cover the overpayment. For example, if you owed $4,200 but your tax refund was only $3,800, TWC would continue to offset your current benefits to collect the remaining $400. Double check your overpayment balance in your TWC account and compare it with the exact amount the IRS intercepted to make sure they match.
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Ezra Collins
•That's actually a good point I hadn't considered. Looking at my documents more carefully, the IRS took $4,175 and my original overpayment was $4,200... so there's a tiny difference. But they still shouldn't be taking my entire payment for just $25!
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Zara Perez
•You're absolutely right. For small remaining balances like $25, they typically only take a percentage of your benefits, not the entire amount. This further suggests there's a processing issue with recognizing your IRS offset payment. Definitely call the Benefit Payment Control unit directly about this.
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