Do I need to report tax refund as income for CalFresh? Will it affect my benefits?
Hey everyone, just filed my taxes last week and expecting a refund of about $1,800. I'm currently receiving CalFresh benefits for me and my two kids, and I'm paranoid about doing something wrong that could jeopardize our food assistance. Do I need to report my tax refund as income? It's not regular income right? But it's still money coming in... Will this put me over the income limit and make me lose my benefits? I really need them to feed my kids. Last time I didn't report something (a one-time gift from my mom) I almost got in trouble for fraud. Anyone know the actual rules on tax refunds for CalFresh in CA?
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Zane Gray
Good news! Tax refunds are NOT counted as income for CalFresh purposes. They're considered a non-recurring lump sum payment. You don't need to report it on your SAR7 or include it in your income calculations. This is true for both federal and state tax refunds. The county calculates your eligibility based on your regular monthly income, not one-time payments like tax refunds. Just keep documentation of your refund in case there are any questions, but you should be fine. It's smart you're asking though - always better to be cautious than risk an overpayment!
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Aileen Rodriguez
•Oh thank goodness! That's such a relief. I was stressing about this for days. So I don't need to call my caseworker or mark it on my next SAR7 form at all? It just doesn't count period?
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Maggie Martinez
I think ur wrong!! Last yr my cousin got a refund and didnt report it and they cut her benifits!! She had to pay back like $600 to calfresh. Better report evrything or they come after u later
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Zane Gray
•There might be something else going on with your cousin's case. According to CalFresh regulations, tax refunds are specifically excluded from countable income. Was she perhaps close to the Income Reporting Threshold (IRT) and something else pushed her over? Or maybe she received Earned Income Tax Credit (EITC) which is treated differently depending on when you received it? The rules changed a few years ago.
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Alejandro Castro
just went through this exact thing!! my tax refund was $2300 this year and i was freaking out too. called my worker and waited on hold FOR-EVER but she told me tax refunds don't count!! she said its a "resource" not "income" and only affects you if it puts you over the resource limit which is like $4250 for most households. so unless your bank account is already close to that limit after you deposit the refund you're totally fine!!
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Monique Byrd
•This is exactly right! And just to add some clarity - the resource limit in 2025 for CalFresh is $4,250 for most households and $5,500 if at least one household member is disabled or age 60+. But remember, resources only matter at application and annual recertification, not for your SAR7 reports in between. Tax refunds are considered non-recurring lump sums and don't count as income. Don't confuse this with CalWorks though, which has slightly different rules!
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Jackie Martinez
It's frustrating how UNCLEAR they make all these rules!!! I've been on CalFresh for 3 years and STILL don't know what I'm supposed to report sometimes. I got a $2000 tax refund last year and stressed for WEEKS about whether I needed to report it. Called the county SEVENTEEN TIMES and kept getting disconnected. Finally got through and they told me exactly what others are saying - tax refunds don't count as income. But WHY don't they make this clearer in their paperwork?? The SAR7 form just says "report all income" without explaining exceptions!
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Lia Quinn
•If you're having trouble reaching your caseworker, try using Claimyr.com - it helped me get through to my CalFresh worker after trying for days. They basically call and wait on hold for you, then connect you when a real person answers. They have a video showing how it works: https://youtu.be/eZ19FHRETv8?si=_CXnXqNXbLl26WB8. Solved my verification issue in one call instead of wasting hours on hold. Way better than getting disconnected over and over.
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Haley Stokes
my tax guy told me that tax refunds dont count for calfresh but the EITC (earned income tax credit) part DOES count if you keep it for more than 12 months. so just spend that money within a year and youre fine lol. i always use mine to catch up on bills anyway... its gone in like 2 weeks
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Aileen Rodriguez
•Thanks for mentioning the EITC part - I do get that in my refund. So you're saying even that part doesn't count unless I somehow manage to save it for over a year? That's good to know. And yeah, realistically the money will be gone quickly... car needs repairs, kids need clothes, been putting off dental work. Sigh.
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Asher Levin
ok but what about if you own a business? i file schedule C and my "refund" is really just estimated tax payments i made during the year coming back to me because my business didn't do as well as expected. different situation maybe?
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Zane Gray
•That's still considered a tax refund for CalFresh purposes, not income. The source of the refund doesn't matter - whether it's from excess withholding from a W-2 job or estimated tax payments from self-employment. The important thing is that it's a return of money you already earned (and may have already reported as income to CalFresh when you earned it). If you reported your net self-employment income accurately throughout the year, the refund is just giving back tax payments, not new income.
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Aileen Rodriguez
Thank you all SO MUCH for the helpful answers! This group is amazing. I feel so much better knowing I don't have to report my tax refund. One less thing to stress about. I'm going to bookmark this thread in case I need to remind myself next year too. And @commenter7 - yes, it's crazy how long the hold times are. I'll definitely check out that service you mentioned next time I need to reach someone at the county.
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Maggie Martinez
•just remember we're not lawyers or nothin so if ur really worried maybe still ask ur caseworker. better safe than sorry!!
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