CalWORKs and Child Tax Credit for 2025 taxes - will CTC be restored this year?

idk if theres a change for next year, but on my taxes last year i only got like $1,800 per kid for the ctc. it sucked compared to the pandemic year when we got those monthly deposits!!!

The expanded Child Tax Credit has not been permanently reinstated yet, but there's legislation being discussed that could potentially restore some of the enhancements for 2025 taxes (filed in 2026). As of now, it remains at $2,000 per qualifying child with only a portion being refundable. Regarding your question about CalWORKs: Tax refunds, including the Child Tax Credit, are NOT counted as income for CalWORKs eligibility or benefit calculation. This is considered exempt income and you don't need to report it on your SAR 7 or recertification. If you had an overpayment because of this, you should request a case review as that was likely an error. I recommend checking the IRS website closer to tax season for the most current information about the CTC status for 2025.

The ctc is different frm the earned income credit right?? I always get them mixed up. I think the EIC is the one thats based on how much u work and the CTC is just for having kids? My caseworker just tells me not to worry about reporting any tax stuff but now im worried im doing it wrong

I talked to my tax preparer last week and she said the Child Tax Credit is still under debate in Congress. They might increase it but probably not back to the pandemic levels. She told me to plan for the lower amount ($2,000 per kid) and be pleasantly surprised if it goes up. Also, your CalWORKs worker gave you WRONG information! Tax refunds including CTC are NOT countable income for CalWORKs. I had this same issue and had to fight with my county. I even printed out the regulations (MPP Section 44-111) that specifically exempts tax refunds and brought it to my appeal hearing. I won and they had to restore my benefits. If you had an overpayment because of this, definitely appeal it!

OMG I'VE BEEN REPORTING MY TAX REFUNDS EVERY YEAR BECAUSE MY WORKER TOLD ME I HAD TO!!!! Are you serious that we don't have to?? I've had my Cash Aid reduced TWICE because of this!!!!!! This system is such garbage - they don't even know their own rules and we suffer for it. I'm so sick of getting different answers from different workers every time I call. Anyone know how far back I can appeal this??

this is why i hate calling the county office they never give the same answer twice and half the time u cant even get thru to a real person

To help everyone understand clearly: Tax refunds of ANY kind (CTC, EITC, standard refunds) are exempt from income consideration for CalWORKs. This is federal law under the American Recovery and Reinvestment Act and is permanent. The relevant California regulation is found in MPP Section 44-111.3, which states tax refunds are exempt as income AND resource for CalWORKs. Regarding the CTC for 2025: Congress is currently debating several tax proposals. The most likely scenario is the $2,000 per child amount continues, but with some minor improvements to refundability (meaning more of it available to lower-income families). Monthly payments are unlikely to return without major new legislation. If you've had an overpayment assessed because you reported your tax refund, request a case review immediately. These are county errors and can be corrected.

my friend said they might do the monthly payments again for 2025 her cousin works for the irs

Thanks everyone for all this info! I'm definitely going to request a review of my case since it sounds like they shouldn't have counted my tax refund as income. And I'll plan for the lower CTC amount just to be safe with my budget. This community is always so helpful - I learn more here than from my actual caseworker half the time!

I'm so glad you found this helpful! It's really frustrating when we get wrong information from workers who are supposed to be helping us. I've been on CalWORKs for 2 years now and I swear I've gotten different answers about the same question from like 4 different people at my county office. For the case review, you can start by calling your worker directly and asking them to remove the overpayment because tax refunds are exempt income. If they give you pushback, ask to speak to a supervisor. You can also file a formal complaint with the county if needed. And yeah, definitely budget for the lower CTC amount - better to be pleasantly surprised than disappointed! Those monthly payments in 2021 were amazing but I'm not holding my breath for them to come back anytime soon.