Will TWC offset my new unemployment claim to pay previous overpayment balance?
I lost my job at the warehouse last week and applied for unemployment. During my previous layoff in 2023, TWC said I was overpaid about $1,800 because I reported some earnings wrong (my mistake). I never finished paying that back. If my new claim gets approved, will they take money from my weekly payments to cover that old overpayment? How much will they take - all of it or just a percentage? This wasn't disaster unemployment or anything special, just regular UI benefits both times. Really worried because I need the full amount to pay rent next month.
14 comments
Payton Black
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.
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Harold Oh
•omg 100%??? that seems so harsh when ppl need $ for basic needs!
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Amun-Ra Azra
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!!!!
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Angel Campbell
•Oh no this is what I'm afraid of. Did you try calling them to work out a payment plan instead of them taking everything?
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Summer Green
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.
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Gael Robinson
•I tried calling this number for three days straight and couldn't get through! If you need to reach TWC quickly, I finally used a service called Claimyr (claimyr.com) that got me through to a TWC rep in about 20 minutes. They have a video showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh. It was worth it to get my payment plan set up before they took my entire benefit amount.
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Edward McBride
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
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Darcy Moore
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??
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Summer Green
•Overpayment is simply when you received more benefits than you were eligible for, regardless of the reason. It could be from your mistake, TWC's error, or a misunderstanding about eligibility rules. Fraud is different - that's when someone intentionally provides false information to get benefits they know they're not entitled to. Overpayments from simple mistakes aren't considered fraud, but you still have to pay them back. Fraud has additional penalties and potential legal consequences.
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Angel Campbell
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!
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Harold Oh
•thats great news! glad you got it figured out!
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Dana Doyle
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.
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Payton Black
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.
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Angel Campbell
•This is really helpful - thank you! I'll ask about that form when I do my first payment request next week. And I already set up direct deposit when I applied.
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