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Connor O'Neill

CalWORKs benefit dropped to $66 after reporting new job income - is this calculation correct?

I'm so frustrated with CalWORKs right now. I was getting $1342 in Cash Aid which barely covered my bills. Finally got a job last month and did the right thing by reporting my income to my worker right away. Made $1367 from my new job and just checked my account to see they cut my benefits down to only $66 this month!!! How am I supposed to survive on that? I'm still trying to get on my feet and now I'm worse off than before I started working. Is this even the right calculation? I thought they were supposed to gradually reduce benefits not just cut me off like this. Anyone else deal with this income reporting nightmare?

This is actually correct based on how CalWORKs calculates your grant amount. They use something called the "income disregard" where they don't count the first $450 of your earned income, then they reduce your grant by 50 cents for every dollar you earn above that. So with $1367 income: $1367 - $450 = $917 (income after disregard) $917 × 0.5 = $458.50 (what they subtract from your grant) $1342 - $458.50 = $883.50 But wait, that's not $66. Something seems off with their calculation. Did you report any other income or have any changes in your household size recently?

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No other changes at all - same household size, no other income besides this new job. I thought the math seemed wrong too! I was expecting to still get around $800 like you calculated. Is it possible they made a mistake? Should I call my worker about this?

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thye probly counted ur income twice happen to me las year. u gotta call ur worker ASAP cuz theyll keep givin u the wrong amount til u fix it. took me 3 months to get mine fixed n i was broke AF the whole time

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Omg I hope that's not what happened! I definitely can't wait 3 months for them to fix this. How did you finally get it resolved?

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There are a few possibilities here: 1. They may have accidentally counted your income twice (like someone mentioned) 2. They could have applied an incorrect income disregard amount 3. Your Semi-Annual Report (SAR 7) calculation might be off 4. There might be a mid-period change that triggered a recalculation I strongly recommend requesting a detailed breakdown of how they calculated your grant amount. You have the right to receive this information. Also, remember that if you disagree with their calculation, you can file for a state hearing within 90 days of receiving the Notice of Action.

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Thank you for the detailed info. I never received a Notice of Action explaining the change - is that something they should have sent me? I'm definitely going to ask for that breakdown.

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I've gone through this exact scenario. What you need to check is if they properly applied your Earned Income Disregard and if they're following the rules for when income is first reported mid-period. When you first report new income, they shouldn't reduce your benefits until the following SAR period UNLESS your income exceeds the Income Reporting Threshold (IRT). Call and ask if they determined you exceeded your IRT - that would explain the immediate reduction.

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This is so helpful! I don't remember what my IRT is, but I definitely don't think one month of income at $1367 should put me over it. I'll ask about this specifically.

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Try using Claimyr to get through to an actual CalWORKs worker faster. I was in the same situation last month with a calculation error and spent DAYS trying to get through on the regular line. With Claimyr (claimyr.com), I got through to a worker in about 15 minutes who fixed my case. They have a demo video that shows how it works: https://youtu.be/jzISHxCPLwE Totally worth it because they fixed my benefits the same day instead of waiting weeks. The worker told me the system sometimes applies mid-period changes incorrectly when you first report employment.

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does this actually work? i hate waiting on hold all day just to get hung up on

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To follow up on what others have said, there's also something called Supplemental Payment that should kick in if your CalWORKs drops because you started working. It's designed specifically to help during the transition to employment. Ask your worker about it when you reach them - it could provide extra support while you're getting established at your new job.

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I had no idea about this Supplemental Payment! My worker never mentioned anything like that. Is this something I need to apply for separately or should it be automatic?

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As a follow-up, I wanted to add that the math also wouldn't work out if they counted your income as Monthly Income instead of Semi-Monthly (if you get paid twice a month). Some workers make this mistake with new employment. If you only received one paycheck but they calculated as if that's what you make every two weeks, it would explain the dramatic reduction.

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That might be exactly what happened! I only had one paycheck last month but my job is biweekly. So if they doubled my income incorrectly that would explain why the amount is so off. Going to call tomorrow morning and specifically ask about this.

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DID U GET A NOTICE OF ACTION IN THE MAIL TELLING U ABOUT THE CHANGE??? If not thats illegal they HAVE TO send u something explaining benefit changes!!! happened to me and i filed for a fair hearing and got backpay from when they messed up. DONT LET THEM SCREW U OVER!!!!!

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No I didn't get anything explaining the change! I just saw the lower amount when I checked my account. Thanks for mentioning this - I'll definitely bring it up when I call.

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Just wanted to say congrats on the new job though! I went through something similar last year and it was rough at first but after a few months I was actually doing better overall than when I was just on aid. Hang in there while you get this sorted out.

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Thank you! That's really encouraging to hear. I'm hoping once I get past this rough patch it'll be worth it. Just scary when you're trying to do the right thing and it immediately makes your situation worse.

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Update us after you talk to them! I'm curious what the actual issue was. Based on your income, the $66 amount definitely seems incorrect unless there are other factors involved.

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