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Middle Class Tax Refund counted as income for CalFresh? Benefits reduced after receiving it

I just got the California Middle Class Tax Refund of $675 (single filer) last week and today I noticed my CalFresh benefits dropped by $95 for next month. Is the tax refund being counted as income? I thought tax refunds were exempt! I'm freaking out because I was counting on those food benefits - my rent just went up and I'm barely making ends meet. My semi-annual report isn't even due for another 2 months, so I don't understand why my benefits suddenly changed. Has anyone else experienced this after getting their Middle Class Tax Refund? Should I report this to my caseworker or wait until my next SAR7?

Chloe Harris

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the tax refund shouldnt count as income for calfresh!!! i got mine ($750) and my benefits stayed the same. sounds like the county made a mistake, you need to call them asap

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Omar Mahmoud

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Thanks for confirming! I was pretty sure tax refunds weren't supposed to be counted, but I wasn't 100% sure about this special Middle Class one. I'll try calling tomorrow morning.

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Diego Vargas

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Tax refunds, including the Middle Class Tax Refund, are considered non-recurring lump sum payments and are exempt from being counted as income for CalFresh purposes. The timing of your benefit reduction is likely coincidental and might be related to something else - perhaps a change in your reported income or deductions from your last reporting period, or possibly an error in their systems. You should definitely contact your county office to find out exactly why your benefits were reduced. Ask them to explain what changed in your eligibility calculation. If it was incorrectly counted as income, request a correction and restoration of any benefits you lost.

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Omar Mahmoud

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This is really helpful information, thank you! Now that I think about it, I did pick up some extra shifts last month that might have been reported by my employer. I'll definitely call to check what triggered the change.

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NeonNinja

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had this exact same issue last month!!! took me 4 DAYS of calling to finally get thru to someone at the county who could fix it. they admitted it was a 'system error' but wouldn't have fixed it if i hadn't kept calling. make sure u document everything!!!

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Omar Mahmoud

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Ugh, that sounds so frustrating! I really don't have time to spend days on the phone... I only get my 30-minute lunch breaks to make calls. Did they backpay you for the benefits you should have received?

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NeonNinja

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yes they did backpay but only after i had to explain the same thing to like 5 different people!!! ridiculous system honestly

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Anastasia Popov

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I've been trying to reach my county office for weeks about a similar issue (different cause, but also unexpected benefit reduction). After getting disconnected multiple times, I found this service called Claimyr that helped me get through. It basically holds your place in the phone queue and calls you back when a real person is about to answer. Saved me hours of waiting on hold! Their site is claimyr.com and they have a demo video showing how it works: https://youtu.be/eZ19FHRETv8?si=_CXnXqNXbLl26WB8 Once I got through, they fixed my issue in minutes. The actual problem took 5 minutes to resolve, but getting to a human was the hard part!

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Sean Murphy

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does that really work? the calfresh phone lines are always busy when i call

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Anastasia Popov

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It worked for me! I was skeptical too, but it saved me from having to sit on hold or keep redialing for hours. The person I spoke with actually knew what they were talking about too, which was refreshing.

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Zara Khan

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I work with CalFresh recipients regularly, and I can confirm that the Middle Class Tax Refund should NOT count as income for your CalFresh benefits. However, there are a few things that could have caused your benefit amount to change: 1. Did you report any changes in the past month (even informally)? 2. Did you have any change in your shelter costs or utility expenses? 3. Did you recently have an income verification that might have shown different income than previously calculated? 4. Are you approaching your recertification period? Regardless, you have the right to request a Notice of Action explaining any benefit change. If you didn't receive one, that's an issue itself. You also have the right to appeal the decision if you believe it's incorrect. I recommend calling your county office and specifically asking for a supervisor if the first person can't explain the change satisfactorily.

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Omar Mahmoud

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Thank you for the detailed explanation! I never received a Notice of Action, which is part of why I was so confused. I did work more hours last month, but I didn't think I had to report it until my next SAR7 since it wasn't above the Income Reporting Threshold. I'll definitely call and ask these specific questions.

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Luca Ferrari

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omg the exact same thing happened to my sister!! she got the tax refund and then her calfresh dropped by like $75! when she finally got someone on the phone they said it was a "system error" and fixed it, but it took her like 2 weeks to get the money back on her EBT card. definitely call them but be prepared to wait forever lol

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Omar Mahmoud

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That's so frustrating! At least they fixed it eventually... I'll try calling tomorrow. Thanks for sharing your sister's experience!

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Diego Vargas

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Just want to clarify something important - if your income did increase (like from extra shifts), you may not need to report it until your SAR7 is due UNLESS it puts you over the Income Reporting Threshold (IRT). Check your last Notice of Action or eligibility letter - it should state your specific IRT amount. For a single-person household in 2025, the IRT is usually around $2,450 per month in gross income. If you went over that amount, you would need to report it within 10 days, even if your SAR7 isn't due yet.

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Omar Mahmoud

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This is super helpful! I just checked my last letter and my IRT is $2,475. My income definitely didn't go that high, even with the extra shifts (I wish!). So it sounds like either this is an error or something else triggered the change. I'll bring this up when I call.

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Sean Murphy

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wait so we NOT supposed to report the tax refund thingy on the SAR7?????? i already did on mine last month cuz i thought we had to report all money we get

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Zara Khan

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It's actually okay that you reported it - being transparent is good. But the caseworker should have excluded it from your income calculation since tax refunds (including the Middle Class Tax Refund) are exempt from being counted for CalFresh eligibility. If your benefits were reduced because of reporting it, you should contact your county office to have them correct the calculation.

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