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LunarEclipse

Accidentally missed reporting cash gift on SAR7 - Will CalFresh cut me off completely?

I'm freaking out right now. My uncle gave me $1,500 cash in March as a gift for my birthday which I used to fix my car. I didn't report it on my April SAR7 because I didn't think I had to report gifts (stupid, I know now). Just got a letter today saying there's a discrepancy in my reporting because somehow they found out about this money. The letter mentions potential 'intentional program violation' and benefit discontinuance! I'm a single mom with 2 kids and we absolutely depend on our CalFresh benefits ($675/month). Has anyone dealt with this before? Will they cut me off completely or just reduce my benefits? Can I appeal this? I can't afford to lose everything over one mistake!

omg this happened to my sister last yr... they cut her benefits for 3 months as a penalty. u should call ur worker ASAP and explain it was an honest mistake!!

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3 months?! We can't survive that long without food assistance. Did she have to pay back the benefits too?

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This is actually a common misunderstanding. One-time gifts over $1,000 DO need to be reported on your SAR7 because they count as lump sum income. But don't panic yet - there's a difference between an honest mistake and an Intentional Program Violation (IPV). You should immediately: 1. Call your county worker and explain it was a misunderstanding 2. Submit a statement explaining why you didn't report it (you genuinely didn't know gifts needed to be reported) 3. Provide documentation showing it was a birthday gift (if possible, like a card or note from your uncle) 4. Ask about a 'client error' determination rather than an IPV They probably won't cut you off completely for a first-time mistake, but they might reduce your benefits for a few months and ask you to repay the overpayment amount.

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Thank you so much for this information! I've been calling the county office all day but keep getting disconnected after waiting 40+ minutes. I'll try again tomorrow morning. Do you know if they calculate the overpayment based on the full $1500 or just how much my benefits would have been reduced if I had reported it correctly?

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I had almost the same thing happen but with a $2000 insurance payout i didnt report. They didnt completely cut me off but they reduced my benefits for 2 months and i had to pay back like $300. call them right away and be super apologetic, dont argue with them at ALL even if ur frustrated. the nicer u are the more they might help u.

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this is so true!! i work at a nonprofit that helps ppl with benefits and being nice to the workers makes SUCH a difference. they deal with angry ppl all day.

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I've been dealing with similar issues trying to reach my CalFresh worker to fix reporting errors. After days of waiting on hold and getting disconnected, I found this service called Claimyr that actually works - they hold your place in the phone queue and call you back when a real person answers. Saved me hours of wait time. Their website is claimyr.com and they have a video showing how it works here: https://youtu.be/eZ19FHRETv8?si=_CXnXqNXbLl26WB8. Since this is about potential benefit discontinuance, you really need to talk to someone ASAP instead of waiting days.

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Thank you! I'll check this out because I'm desperate to talk to someone. I've already tried calling 6 times today and either get disconnected or told the wait is over 2 hours. I need to get this fixed before they actually cut off my benefits.

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THE SYSTEM IS DESIGNED TO PUNISH POOR PEOPLE!!! They KNOW most people don't understand all these complicated rules and then they trap you with these "violations" so they can kick you off. My cousin lost benefits for 6 MONTHS because she didn't report her boyfriend staying with her. They called it "fraud" even though he wasn't helping with any bills!!! The whole system is RIGGED against us!!!! Fight this!!!

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That's different though. Not reporting household members is way more serious because it affects your household size. They're pretty strict about that because it directly impacts eligibility. A one-time gift that wasn't reported is usually treated as an honest mistake, especially for first offenses.

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Some accurate information here: For a first-time error like this, you'll likely face: 1. An overpayment claim (you'll need to repay the difference between what you received and what you should have received) 2. A possible 1-3 month benefit reduction (not elimination) The most important thing is to respond to the letter by the deadline and request a hearing if needed. Also make sure to clarify whether they're treating this as an Administrative Error (AE), Inadvertent Household Error (IHE), or Intentional Program Violation (IPV). Only an IPV would result in disqualification from the program. They have to prove you intentionally tried to defraud the program for an IPV, which is hard to do for a first offense like this.

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This is so helpful, thank you! The letter mentions something about requesting a 'state hearing' within 90 days. Is that what I should do? Or should I try to resolve it with my county worker first?

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Try to resolve it with your county worker first. If you're not satisfied with their decision, THEN request the state hearing. But don't miss the 90-day deadline! Mark that date on your calendar. You can always withdraw your hearing request if you resolve it directly with the county.

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Just to clarify for everyone - the current rules for CalFresh income reporting in 2025 are: - You must report any income change over $125 on your SAR7 - One-time payments/gifts over $1,000 must be reported, even if they're gifts - You must report if your income goes above the Income Reporting Threshold (IRT) at any time, not just on your SAR7 Your IRT should be listed on your last Notice of Action letter. For a household of 3 in 2025, the gross monthly IRT is typically around $3,850.

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wait is this true?? i thought gifts weren't counted as income for calfresh??

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Have u checked ur EBT card balance recently? Sometimes they don't actually stop benefits even when they send those scary letters. My benefits kept coming even after i got a warning about income reporting problems. Check your balance before panicking.

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Just checked - benefits are still there for this month. The letter says they're reviewing my case and will make a determination within 30 days, so I guess they haven't decided what to do yet. Praying I can talk to someone before they make any decisions!

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u should know that if they do decide its an overpayment u can setup a payment plan for like $10/month which is way better than losing benefits. also u can ask for a 'compromise' sometimes where they reduce what u owe if u can prove financial hardship. i had a $780 overpayment reduced to $390 after i showed them my bills and low income.

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That's really good to know! A payment plan would be much more manageable than losing everything. I'll definitely ask about a compromise if it comes to that. Just have to get through to someone first...

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I'm a benefits advocate and see cases like this regularly. The good news is that for a first-time reporting error involving a gift, they rarely impose an IPV (Intentional Program Violation). Here's what you should do immediately: 1. Document everything - get a written statement from your uncle confirming it was a birthday gift 2. When you finally reach your worker, emphasize that you genuinely didn't know gifts over $1000 needed to be reported 3. Ask them to classify this as an Inadvertent Household Error (IHE) rather than an IPV 4. Be prepared that they may recalculate your benefits for the months since you received the gift The overpayment calculation isn't based on the full $1500 - they'll figure out how much less you should have received if you'd reported it correctly. For a household of 3, a $1500 lump sum might have reduced your monthly benefits by $50-100, so the overpayment could be much less than you're fearing. Stay calm and be honest - this happens more often than you think, and most counties are understanding about genuine mistakes.

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Thank you so much for this detailed advice! I'm feeling a bit less panicked now. I'll definitely get that written statement from my uncle - he's very understanding and will help however he can. The idea that the overpayment might only be $50-100 per month instead of the full $1500 is such a relief. I was imagining owing thousands of dollars! I'm going to keep trying to reach my worker and make sure I emphasize that I genuinely didn't understand the gift reporting rule. Really appreciate you taking the time to explain this so clearly.

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I went through something very similar last year when I didn't report a $1,200 settlement check from a minor car accident. The county initially sent me a scary letter about potential fraud, but after I called and explained it was an honest mistake (took me 3 days of calling to finally get through!), they classified it as an Inadvertent Household Error instead of an IPV. I ended up with a $180 overpayment that I'm paying back at $25/month, and my benefits were only reduced for 2 months. The key things that helped me were: 1) Being super polite and apologetic on the phone, 2) Emphasizing that I genuinely didn't understand the reporting requirements, and 3) Providing documentation showing it was a one-time payment, not regular income. Don't give up trying to reach your worker - it's worth the frustrating phone calls because resolving this directly with them is way better than letting it go to a hearing. You've got this! 💪

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This gives me so much hope! Thank you for sharing your experience. It's reassuring to hear that they were reasonable when you explained it was an honest mistake. I'm definitely going to keep emphasizing that I genuinely didn't know about the gift reporting rule - because that's the truth! The fact that your overpayment was only $180 instead of the full $1,200 really helps me understand how they calculate it. I'll keep being persistent with the phone calls even though it's frustrating. Stories like yours help me believe this will work out okay. Really appreciate you taking the time to share! 🙏

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I'm so sorry you're going through this stress! As someone who's navigated CalFresh for years, I want to reassure you that this situation is more common than you think and it's very unlikely they'll cut you off completely for a first-time mistake like this. The most important thing right now is to get in touch with your worker ASAP to explain this was an honest misunderstanding. When you do reach them, emphasize these key points: - You genuinely didn't know birthday gifts over $1000 needed to be reported - This was a one-time gift, not regular income - You used the money for necessary car repairs, not luxury purchases - You're willing to cooperate fully to resolve this Also, make sure to ask them to classify this as an "Inadvertent Household Error" rather than an "Intentional Program Violation." The difference is huge - an IHE might mean a small overpayment and temporary benefit reduction, while an IPV could mean disqualification. Don't panic about the overpayment amount either. They calculate it based on how much your benefits would have been reduced if you'd reported correctly, not the full $1500. For most households, this ends up being much less scary than it initially seems. Hang in there - you're going to get through this! 💙

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Thank you Miguel, this is exactly what I needed to hear right now. I've been losing sleep over this for days thinking they were going to kick my family off benefits permanently. Your point about emphasizing that I used the money for necessary car repairs is really smart - I hadn't thought about mentioning that but it shows I wasn't trying to hide anything or use it frivolously. I'm definitely going to ask specifically about the "Inadvertent Household Error" classification when I finally get through to someone. Everyone here has been so helpful in explaining that the overpayment won't be the full $1500 - that was my biggest fear! I'm feeling much more hopeful that this will work out. Really grateful for this community support! 💙

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I just want to say how grateful I am for everyone who's shared their experiences and advice here! As a newcomer to this community, I'm amazed by how supportive and knowledgeable everyone is. Reading through all these responses has taught me so much about CalFresh rules that I never knew - like the fact that gifts over $1000 need to be reported (I had no idea either!). For anyone else who might be in a similar situation, it's really reassuring to see that honest mistakes like this usually don't result in complete benefit termination, especially for first-time issues. The distinction between Inadvertent Household Error vs Intentional Program Violation that several people mentioned seems really important to understand. I'm bookmarking this thread because the advice about documentation, being polite with workers, payment plan options, and the hearing process is incredibly valuable. Thank you all for taking the time to help someone navigate what could have been a really scary situation alone! 🙏

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Welcome to the community! I'm also relatively new here but have already learned so much from everyone's shared experiences. It's really heartwarming to see how people who've been through similar struggles are willing to help others navigate these complex benefit systems. Your situation has actually taught me about the gift reporting rule too - I had no idea that was a thing! It seems like there are so many nuances to CalFresh rules that aren't clearly explained when you first apply. I hope everything works out smoothly with your county worker and that you can get this resolved as an honest mistake. Please keep us updated on how it goes - your experience will probably help other community members who might face similar situations in the future!

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I'm new to this community and just wanted to say how incredibly helpful this thread has been! I'm currently dealing with a similar reporting issue (forgot to report a $800 tax refund on my SAR7) and reading everyone's experiences has really calmed my nerves. The distinction between IHE vs IPV that several people explained is something I had never heard of before but seems crucial to understand. @LunarEclipse I hope you're able to get through to your worker soon! Based on what everyone has shared, it sounds like your situation with the birthday gift is exactly the type of honest mistake that gets classified as an IHE rather than fraud. The advice about getting documentation from your uncle and emphasizing that you genuinely didn't know the reporting rule seems spot on. This community is such a valuable resource for navigating these complex benefit rules that aren't always clearly explained. Thank you to everyone who takes time to share their knowledge and experiences to help others! 🙏

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Welcome to the community @Mateo Silva! It's really reassuring to see how supportive everyone is here. Your situation with the unreported tax refund sounds stressful too, but based on what I've learned from this thread, it seems like honest mistakes with one-time payments are usually handled pretty reasonably by the counties. The fact that you're only dealing with $800 vs my $1500 might work in your favor too. Have you tried calling your worker yet, or are you still preparing to reach out? I'm still trying to get through myself but feeling much more confident after reading everyone's advice. It's amazing how much clearer these benefit rules become when people share their real experiences instead of just trying to decipher the official paperwork! Good luck with your situation - hopefully we'll both get this sorted out as simple client errors rather than anything more serious.

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As someone who's been on CalFresh for about two years, I just wanted to add that this community has been such a lifesaver for understanding all the confusing rules! Reading through this thread has been incredibly educational - I had absolutely no idea that gifts over $1000 needed to be reported either. It seems like such an easy thing to miss, especially since most people think of gifts as separate from "income." @LunarEclipse your situation sounds really stressful, but honestly based on everyone's responses here, it seems like you're handling it exactly right. The fact that you're being proactive about trying to reach your worker and that you have a clear explanation (birthday gift used for necessary car repairs) should work in your favor. One thing I learned from my own CalFresh journey is that the workers really do see a difference between people who are trying to follow the rules but made an honest mistake versus people who are intentionally trying to game the system. Your genuine concern and effort to fix this will likely be obvious to them. I'm definitely going to be more careful about checking what needs to be reported going forward - this thread has been a real wake-up call about how detailed the reporting requirements actually are. Thank you to everyone who shared their experiences, especially the advocates who explained the IHE vs IPV distinction. This kind of real-world knowledge is so much more helpful than trying to figure out the official forms and letters on your own!

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@Tyler Murphy you re'absolutely right about this community being a lifesaver! I m'also fairly new here and have learned more about CalFresh rules from reading people s'real experiences than I ever did from the official paperwork. The gift reporting requirement is definitely something that seems like it should be more clearly explained upfront - I bet tons of people make this same mistake without realizing it. Your point about workers being able to tell the difference between honest mistakes and intentional fraud is really reassuring. It sounds like being genuine and proactive about fixing issues goes a long way with the county workers. Thanks for adding your perspective - it s'helpful to hear from someone who s'been navigating CalFresh successfully for a couple years!

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