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Luca Marino

CalWORKs says I need an earnings and loss form for 1099 income - SAR7 rejected again

So I'm about to pull my hair out dealing with CalWORKs. I submitted my SAR7 last week with copies of my January income from DoorDash and Instacart. County office called yesterday saying my report is incomplete because I'm receiving 1099 income which makes me "self-employed" and I need to fill out some special earnings and loss form. What??? I'm not running a business, I'm just doing gig work! They're mailing me this form but I feel like they're just looking for reasons to cut my benefits. Back in 2023 they pulled something similar, rejected my reporting for some technicality. I swear they just don't want to pay people. Seriously thinking about giving up on CalWORKs altogether - I already spent my remaining EBT balance on decent groceries for once because I figured they'd cut me off anyway. Has anyone dealt with this 1099/self-employment situation? What's on this stupid form they're sending?

Nia Davis

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Unfortunately they're actually correct on this one. For CalWORKs, 1099 work (DoorDash, Uber, Instacart, etc.) is considered self-employment, which means you need to report expenses along with your income. The form they're sending is probably the Self-Employment Income Report (SEIR) where you'll list your gross earnings AND business expenses like gas, car maintenance, phone bill percentage used for apps, etc. Don't give up! This actually works in your favor because they only count your NET income after expenses, which could be significantly lower than your gross earnings. This could mean higher benefits for you.

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Luca Marino

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Wait WHAT? You mean I've been reporting my TOTAL earnings for the last few months with no deductions?? So they've been calculating my benefits using the full amount??? Nobody ever explained this to me!!!

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Mateo Perez

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def don't give up!! this happens all the time with gig workers, the system is so confusing. my sister drives for uber and she almost lost her cash aid last yr until she figured out the self-employment thing. just track ur gas, car stuff, part of ur phone bill, etc. u can even deduct part of ur car insurance i think

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Aisha Rahman

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Exactly. For CalWORKs, you're allowed to deduct legitimate business expenses from your 1099 income. Keep ALL receipts for gas, oil changes, portion of phone bill, portion of car insurance, car washes, etc. You'd be surprised how much these expenses add up, which lowers your countable income and could increase your grant amount.

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I went through this exact headache with my SAR7 in December. Once you get that form, make COPIES of everything before you submit it. And take detailed notes during any conversation with your worker. I had my self-employment paperwork "lost" TWICE and almost got discontinued. Finally I discovered Claimyr.com which helped me actually get through to a supervisor on the phone (check out their demo: https://youtu.be/jzISHxCPLwE). Once I got through to a real person, I was able to get it sorted out. The 1099 stuff is actually a good thing because of the expense deductions, but dealing with the paperwork is a nightmare.

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Luca Marino

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I'll check out that website, thanks. I've been waiting on hold for 2+ hours every time I call. So frustrating! Did they make you provide receipts for all your expenses or just list the amounts?

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Ethan Brown

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THE WHOLE SYSTEM IS DESIGNED TO MAKE YOU GIVE UP!!! I swear they hire people specifically to find reasons to deny our paperwork. My worker told me one thing and then the next month said something completely different about my reporting requirements. They WANT you to make mistakes so they can cut your benefits and save money. It's all a game to them while we're struggling to survive!!!

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Yuki Yamamoto

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I understand feeling that way sometimes, but I've worked with many different CalWORKs recipients, and a lot of these issues come down to workers having massive caseloads and insufficient training. What seems like malicious intent is often just bureaucratic confusion. That said, YOU need to protect yourself by documenting everything. Take names, dates, and notes of all conversations with your worker.

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Carmen Ortiz

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ya this exact thing happened with me when i started doing doordash. the earnings & expense form isnt that bad but make sure u keep track of miles u drive for work too, thats a big deduction. also dont do what i did and 4get to sign the form lol they sent mine back and i almost missed the deadline

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Luca Marino

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Thanks for the tip about tracking miles! I haven't been doing that at all. Do you just write down your mileage at the start and end of each day?

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Yuki Yamamoto

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The form they're sending is the Self-Employment Income Report. For gig workers, this actually works in your favor! You're allowed to deduct business expenses (gas, mileage, phone, etc.) from your gross income. This typically results in a LOWER countable income for benefit calculations than if you just reported your 1099 earnings. I recommend: 1. Download a mileage tracking app immediately (like Stride or Everlance - they're free) 2. Organize receipts from January for gas, car maintenance, etc. 3. Calculate what percentage of your phone/internet is used for gig work The CalWORKs regulations on self-employment are in MPP Section 44-113.21. You're entitled to ALL reasonable business expenses, and this can significantly reduce your countable income.

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Luca Marino

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This is so helpful, thank you! I'm downloading a mileage app now. Can I estimate my January miles since I wasn't tracking them? I do roughly the same routes every week.

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Mateo Perez

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my cousin spent her ebt on crab legs last month when they threatened to cut her off and then her case worker magically found a way to fix her paperwork issue lol sometimes u gotta do what u gotta do

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Nia Davis

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That's really not how the system works. Your cousin's paperwork issue getting resolved had nothing to do with how she spent her benefits. CalWORKs workers don't monitor individual purchase transactions. Please don't spread misinformation that could cause people to make poor financial decisions.

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Aisha Rahman

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Something important that hasn't been mentioned yet: You have the right to request Retroactive Benefits if you've been reporting your income incorrectly (without deducting expenses) in previous months. File an NA 1291A Request for Case Review and explain that you weren't properly informed about expense deductions for self-employment income. If approved, you could receive additional benefits for past months where your grant was calculated incorrectly. Also, when you complete the self-employment form, be thorough but reasonable with your expenses. They do occasionally audit, so don't claim expenses you can't substantiate if asked.

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Luca Marino

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Wait, I could get back pay for the months I reported wrong? That would be amazing because my grant has been really low. Where do I get this NA 1291A form? The county never tells me about these options!

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When I was trying to explain my 1099 situation to CalWORKs, I spent 3 days trying to reach someone by phone. Kept getting disconnected after waiting for hours. Finally used Claimyr to get through to a real person at the county (seriously, check out their demo: https://youtu.be/jzISHxCPLwE). The worker I spoke with actually helped me fill out the self-employment form over the phone. Turns out I was eligible for more benefits after properly accounting for my business expenses!

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Ethan Brown

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Did that service actually work? I've tried EVERYTHING to get thru to my worker!! Even showed up in person and they said I needed an appointment! I'll try anything at this point because my benefits are about to be cut off!!

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AstroAce

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I'm new to this whole CalWORKs thing and just started doing DoorDash a few weeks ago. Reading through all these comments is honestly overwhelming but also really helpful! I had no idea about the mileage tracking or that I could deduct expenses. I've just been reporting my gross earnings like an idiot. Should I be worried that I'm going to get in trouble for reporting wrong on my first SAR7? I literally just submitted it last week with my total DoorDash earnings and didn't mention any expenses because I didn't know I was supposed to. Now I'm freaking out that they're going to think I was trying to hide something or get more benefits than I deserve. Do I need to call them and tell them I made a mistake?

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Don't panic! You're not in trouble for reporting correctly based on what you knew at the time. When you submitted your SAR7 with gross earnings, that's what most people do initially because the system is confusing and they don't explain the self-employment rules clearly. You should definitely call and let them know you have business expenses to report - this will actually HELP you by potentially lowering your countable income. When you call, just say "I recently learned that I can deduct business expenses from my 1099 income and I'd like to update my report." They might send you the same self-employment form that @Luca Marino is getting. Start tracking your miles and expenses now so you re'prepared for next time!

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