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Gabriel Ruiz

CalWORKs income eligibility question - gross vs. net pay limits and childcare documentation

I just started a new job but I'm worried about my CalWORKs eligibility. My gross monthly pay is $2,875 which I think is over the limit for a family of 3, but after taxes and everything my net pay is only about $2,320. Does CalWORKs look at gross or net income to determine eligibility? I heard there might be some deductions for childcare costs too? I'm paying my sister $450/month to watch my kids while I work - would I need to provide proof of this payment? What kind of documentation would they accept since I pay her in cash? Really stressed about losing my benefits right when I'm trying to get back on my feet...

They definitely look at gross income first, but you get several deductions before they determine eligibility. The childcare costs can be deducted, plus you get a $500 earned income disregard and they only count 50% of your remaining earned income. So your countable income would be much lower than your gross. For the childcare, yes you need proof. Since you pay your sister, you'll need a written statement from her that includes her name, address, phone number, the children's names, hours of care, and amount paid. She'll also need to sign it. Your worker might also ask for her ID copy.

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Gabriel Ruiz

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Thank you! So with the $500 disregard and only counting 50% of the rest, plus childcare costs, I might still qualify? That's a relief! Do you know if my sister would need to report this income on her taxes? I don't want to cause problems for her either.

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Peyton Clarke

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i was in same situation last yr. my sis watched my kids too & they wanted her ID and made her fill out some form. they told me she needs to report it as income but idk if she did lol. but we got approved and they counted the childcare as a deduction

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Vince Eh

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The calculation would go something like this: $2,875 gross income -$500 earned income disregard =$2,375 Then they only count 50% so: $1,187.50 Then subtract childcare: $1,187.50 - $450 = $737.50 That would be your countable income for a family of 3, which is definitely under the limit. You should be fine as long as you provide the childcare verification. Your sister will need to complete a childcare verification form (CCP 2145) which your worker can provide. And yes, technically she should report this as income.

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Gabriel Ruiz

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This breakdown is super helpful, thank you! I'll ask my worker for that form during my interview. I didn't realize they take so much off before calculating eligibility.

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They told me I was over the limit even tho I had childcare costs but then I found out the worker didnt enter my childcare expenses right!! Make sure u check ur notices carefully and ask for a breakdown of how they calculated everything!!

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Don't forget that if your income stays this high, you'll probably hit your Income Reporting Threshold (IRT) which means you MUST report it to CalWORKs, even outside your regular SAR 7 reporting period. Check your last Notice of Action for your IRT amount. Missing an IRT report can cause an overpayment you'll have to pay back.

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Gabriel Ruiz

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I didn't know about the IRT thing! I'm going to check my paperwork tonight. Definitely don't want an overpayment situation.

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Ezra Beard

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had a similar situation trying to reach my worker about childcare verification. was on hold FOR HOURS until i found this service called Claimyr that got me through to a CalWORKs worker in like 20 minutes! saved me from missing work to sit on hold all day. they have a video showing how it works: https://youtu.be/jzISHxCPLwE and their website is claimyr.com - totally worth it when you need to actually talk to someone about complicated eligibility questions like this

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Gabriel Ruiz

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I've been on hold for so long trying to ask these questions! Thanks for the tip - I'll check that out.

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THEY ARE ALWAYS TRYING TO FIND WAYS TO CUT PEOPLE OFF!!! My sister in law was making less than u and they said she was over the limit!! Make sure u tell them EVERYTHING u spend on the kids and DEMAND the childcare deduction. bring ALL ur pay stubs and childcare receipts. they will try to use gross but fight for them to use the right calculation!!!!!

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my son gets ssi to does tht count toards the income limit???

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Vince Eh

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That's a different situation. SSI income is not counted for CalWORKs eligibility, but the person receiving SSI is not included in the CalWORKs assistance unit either. So if your son gets SSI, his needs are not considered when calculating your grant amount, and his SSI doesn't count as income for the rest of the family's CalWORKs eligibility.

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One other thing - if you're just starting this job, make sure to report it within 10 days! Even though we're on semi-annual reporting now, new jobs still need to be reported right away. And keep all your paystubs - they'll want to see them.

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Gabriel Ruiz

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Thank you all for the helpful responses! I have my recertification interview next week and I'll bring all my paystubs and ask my sister to write out that statement about the childcare. The calculation breakdown really helps me understand how they'll look at my income. I'm still nervous but feeling more prepared now!

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