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An overpayment is caused when TWC pays unemployment benefits that you were not eligible to receive. State law requires TWC to recover all unemployment benefits overpayments.
There is no statute of limitations on debts owed to the state. TWC cannot forgive or dismiss the overpayment and there is no exception for hardship.
Overpayments stay on your record until repaid. You must repay those benefits even if the overpayment was not your fault. We cannot pay you benefits if you have an overpayment.
If we determine that the overpayment is unemployment fraud, you must repay the benefits you were not eligible for, plus a 15 percent penalty on the benefits you incorrectly received. For more information, see Unemployment Benefits Fraud.
State law requires that you repay your overpayment before we can pay further unemployment benefits. TWC cannot dismiss or forgive an overpayment, and there is no exception in the law for hardship cases. If you are requesting unemployment benefits, we recommend that you continue to submit biweekly payment requests so we can apply each eligible payment toward the overpayment until it is repaid.
If you have an overpayment of unemployment benefits in another state, that state may request that we send your Texas benefits to them until your overpayment is paid. If the overpayment from another state is collectable by Texas, we will notify you. After you repay the overpayment, we will release any remaining payable benefits to you.
If you have an overpayment in Texas and receive unemployment benefits from another state, we can ask that state to recover the money for us. The other state will send your benefits to TWC to repay your overpayment, as allowed by the laws of the other state.
If you have an overpayment, we mail you a Determination on Payment of Unemployment Benefits letter explaining the reason for your overpayment, what weeks were overpaid, and the amount of money you must repay.
Within 30 days of the date we determine that you have an overpayment, we mail a Statement of Overpaid Unemployment Benefit Account (billing statement), with instructions on how to repay the overpayment. Approximately 30 days later, we mail a second billing statement with a repayment schedule, unless your case is being prosecuted.
You may appeal any TWC determination that says we cannot pay you benefits or you have an overpayment. For appeal information, see your Determination on Payment of Unemployment Benefits or our Introduction to Unemployment Benefits Appeals page.
If you are requesting benefits, we will apply each eligible payment toward reducing your overpayment. If the appeal decision reverses or changes the overpayment amount, we will adjust the overpayment, as needed.
If you are not requesting benefits, you are not required to send payments during the appeal process. If the appeal decision upholds the overpayment, you must begin repaying the overpayment. If TWC reverses or changes the overpayment amount, we will adjust the overpayment as needed.
We will send you monthly billing statements as long as you consistently make payments. If we do not receive repayment or speak with you within 30 days of mailing your second billing statement, we will not continue to mail billing statements. However, the overpayment stays on your claim record and state law requires that we continue to take action to recover the overpayment until repaid.
If you have overpayments on multiple claims, we send a separate billing statement for each program. We cannot provide a combined statement. However, you may add the amounts together and pay with one check each month.
You may receive an overpayment billing statement even if you have not applied for unemployment benefits recently. The Texas Constitution requires that all debts owed to the state be repaid, with no statute of limitations.
When we receive updated information, we mail a billing statement as a reminder to pay the debt. For example, when an employer reports hiring you for a new job, we mail you a statement as a reminder about the overpayment.
It is important to promptly repay an overpayment because:
If you are requesting benefits, you cannot request a repayment plan, and we will cancel any repayment arrangements you made before beginning your claim. You may mail additional payments to TWC to satisfy your overpayment debt sooner.
You may repay your overpayment by mailing a check or money order payable to TWC. To ensure proper credit, include on your check or money order your name, last four digits of your Social Security number, and the account number shown on your billing statement. To request a receipt, contact Benefits Overpayment Collections at 512-936-3338. Note: We cannot accept payment online, or by phone, debit card, credit card or electronic check.
Mail your check or money order (payable to TWC) to:
TWC Revenue & Trust Management
P.O. Box 149352
Austin, TX 78714-9352
If you cannot repay the entire overpayment amount at once, contact TWC to request a repayment plan. If your overpayment meets certain criteria, we can set up a repayment plan.
A Notice of State Payment Held is a letter the Texas State Comptroller sends to notify you when they recover an unemployment benefits overpayment by withholding certain payments to you, such as lottery winnings. This is also called a warrant hold.
The state cannot pay you unclaimed property, lottery winnings, unemployment benefits, or state job-related expenses until you repay the benefits overpayment in full. For example, if you have a Texas state government job and turn in travel expenses, the Comptroller sends your travel reimbursement payment(s) to TWC to repay your overpayment.
To pay off your overpayment faster, complete the Voluntary Offset on the back of your Notice of State Payment Held letter and send it to the State Comptroller as instructed. If the warrant amount exceeds the overpayment debt, the Voluntary Offset also will allow the Comptroller to speed up the processing of the balance to be paid to you.
For information on how to provide full payment to TWC to release a Comptroller’s payment hold, call Benefit Overpayment Collections at 512-936-3338.
If an overpayment meets certain criteria, TWC may file an Abstract of Assessment in the county of record. An Abstract of Assessment, similar to a property lien, has the effect of a civil suit. If you are served with an Assessment and do not agree with the overpayment, you or your attorney may file a Notice of Judicial Review with the District Court of the respective county.
To request the payoff amount for your overpayment, send a fax to Benefit Overpayment Collections at 512-936-3799. Include the reason for your request and a copy of the Abstract of Assessment.
For information on how to pay off your overpayment to release the Abstract of Assessment, call Benefit Overpayment Collections at 512-936-3338.
If you have an overpayment of unemployment benefits, and have not repaid that debt, your federal Internal Revenue Service (IRS) tax refunds may be subject to reduction by the overpaid amount.
The Treasury Offset Program (TOP) is a federal program that collects past due debts owed to federal and state agencies by capturing IRS tax refunds to offset these debts. TWC issues letters to former unemployment benefit claimants who have debts that are subject to collection through TOP.
Federal law requires TWC to collect specific types of unemployment benefit debt from both claimants and employers. Claimants with an overpayment caused by incorrectly reported earnings, fraud and fraud penalties are subject to TOP.
Collection through TOP is only initiated after an overpayment determination is final and other collection notices have failed. If you have an overpayment that is subject to TOP, TWC will mail a letter showing the amount you owe, along with instructions on how to avoid referral to collection. You must complete one of the following actions within 60 days of the mail date of the letter to avoid collection through TOP:
As part of the TOP collection process, TWC is required to notify you of our intent to refer the debt to TOP for collection 60 days before referral in order to give you the opportunity to either make payment arrangements or explain why the debt should not be considered subject to TOP collection. Receiving a Notice of Intent to Offset letter does not give you an additional opportunity to appeal the original decision that caused the overpayment. If you have already paid the amount in question or have addressed the debt in a bankruptcy filing, you will need to provide information regarding these actions.
For additional information on TOP, you can review the Bureau of the Fiscal Service websites:
For laws relating to TOP you can visit:
We mail important documents to the most recent address we have for you. Be sure to change your address as needed, so that you will receive all documents.
If you lost or did not receive documents we mailed to you, see TWC Open Records for instructions on requesting copies.
If you filed for bankruptcy, call 512-936-3338and provide your case number and date of the bankruptcy filing. We will verify your bankruptcy status and add that information to your account.
While a bankruptcy case is active, we will temporarily stop overpayment recovery actions. If your overpayment debt is discharged in bankruptcy, we will permanently stop all recovery of benefits. If the bankruptcy is dismissed, your repayment obligation continues and we will resume overpayment recovery.
If a claimant with an overpayment dies, the person managing the deceased person’s affairs should mail or fax a copy of the death certificate to TWC. The death certificate does not need to be certified. If there is a Texas State Comptroller’s payment hold on the deceased claimant’s account, we will request that the overpayment be repaid using funds from a probated estate and funds payable under the deceased claimant’s Social Security number.
TWC Revenue & Trust Management
P.O. Box 149352
Austin, TX 78714-9352
To discuss the reason for an overpayment, contact the TWC Tele-Center
To make payment arrangements, contact Benefit Overpayment Collections:
To discuss a Notice of Potential Overpayment letter, contact Benefit Investigations