Will TWC offset my new unemployment claim to pay previous overpayment balance?

Yes, TWC will absolutely recover the overpayment from your new claim. They typically withhold 100% of your benefits until the overpayment is fully recovered. This is standard procedure for regular UI claims. The system automatically links your SSN to the previous overpayment balance.

The TWC system is SO BRUTAL with these overpayments!!! They took EVERY PENNY of my benefits for 6 WEEKS to recover $2100 I supposedly owed from 2022. I couldn't even buy GROCERIES! Then I found out later they miscalculated and I didn't even owe that much. The system is RIGGED against regular people trying to survive!!!!

I went through this exact situation last year. Yes, TWC will recover the overpayment from your new claim payments, but you actually have some options: 1. By default, they'll withhold 100% of your benefits until the overpayment is paid 2. You can request a payment plan where they take only a percentage (usually 25-50%) of each payment 3. In cases of financial hardship, you can request a temporary waiver You NEED to call TWC asap to set up the payment plan before your first payment processes. Otherwise, they'll take 100% automatically. The number is 800-939-6631, but it's extremely difficult to get through.

my friend had this happen and TWC took all her $ for like 5 weeks. she couldnt even buy gas to look for work. seems stupid system imo

wait im confused, is overpayment when you make a mistake on your claim or when TWC pays you too much? i think i might have this problem too but im not sure what counts as overpayment exactly?? is it different from fraud??

Thanks everyone for the responses. I called TWC yesterday using that Claimyr service someone mentioned (it actually worked!) and was able to speak with an agent. They confirmed they would take 100% of my benefits until the overpayment is paid off, but I explained my situation and requested a payment plan. They're going to take 30% of each payment until it's paid off. The agent said I needed to show financial hardship documentation, so I emailed them my rent agreement and utility bills. Really relieved I don't have to lose all my benefits for weeks!

I had something kinda similar happen with my wife's benefits last fall except hers was from a job that didn't report her wages right and TWC thought she was working when she wasn't so they said she got like $2340 in overpayment but we appealed it and while we were waiting for the appeal they still took her whole check! We had to borrow money from my parents just to pay bills it was awful.

Just to add some useful information: If you're facing financial hardship due to overpayment recovery, request Form TWC-70, "Request for Waiver of Overpayment Recovery." While full waivers are rare for regular UI, they may approve a reduced recovery percentage based on your financial situation. Also, make sure you're requesting payment through direct deposit rather than the TWC debit card, as that can sometimes delay your first payment when there's an overpayment situation. You'll need to certify for your payment requests on your scheduled day, even if you know they'll be applying some or all of it to your overpayment.

For anyone else dealing with overpayment recovery, I want to share what I learned from my experience with TWC. When you call to set up a payment plan, be prepared with specific documentation of your monthly expenses (rent, utilities, groceries, transportation, etc.). The more detailed you can be about your financial hardship, the better chance you have of getting a lower recovery percentage. I also found out that if your circumstances change (like if you find part-time work or have additional expenses), you can request to modify the payment plan. Don't just accept the default 100% recovery - advocate for yourself and explain why you need a portion of your benefits to survive while paying back the overpayment.

I'm currently going through a similar situation and wanted to share what I've learned about timing. If you haven't received your first payment yet, you might still have time to set up the payment plan before they automatically start taking 100%. In my case, I called TWC the day after I got my determination letter (before my first payment request date) and was able to get a 40% recovery rate set up. The key is acting fast - once that first payment processes at 100% recovery, it becomes much harder to get them to adjust it retroactively. Also, keep detailed records of all your communications with TWC agents including dates, times, and what was discussed. This has been helpful when I've had to call back to clarify things about my payment plan.

Just want to echo what others have said about acting quickly - I went through this same situation about 8 months ago with a $1,200 overpayment from 2022. The difference between calling TWC immediately versus waiting even a few days can literally mean the difference between getting some money to live on versus having $0 for weeks. I was able to negotiate down to a 35% recovery rate by showing them my monthly budget breakdown and explaining that I'm a single parent with childcare costs. One thing I didn't see mentioned here is that you should also ask about the appeals process for the original overpayment determination if you think there was an error - sometimes the overpayment amount itself is wrong and you can get it reduced or eliminated entirely through an appeal, even if it's from a previous year.