CalWORKs slapped me with $1000 overpayment for unreported income - how to negotiate payment plan?

Don't panic - this happens to a lot of people on CalWORKs. First, you don't have to pay it all at once. You have the right to request a reasonable payment plan based on your circumstances. Call your worker and ask for an "O/P Payment Agreement" form. When I had an overpayment, they let me pay as little as $10/month when I explained my situation. Also, check if the calculation is correct. Sometimes they make mistakes in determining overpayments. You can request a breakdown of how they calculated the $1000 and review it carefully. You also have the right to appeal if you think it's wrong - just make sure you do it within 90 days of getting the notice.

dont close ur case!!! if u close ur case they will still make u pay it back but theyll take it from ur tax refund or garnish wages. better to stay on and let them take a little bit out each month. thats what happened to my sister she thought closing her case would make the overpayment go away but nope.

I work as an advocate for CalWORKs recipients, and I want to clarify some important points: 1. You have the right to request a payment plan that fits your budget. The county cannot demand immediate full payment. 2. You can also request a "waiver of overpayment" if repayment would cause hardship. This is rarely granted but worth trying if you truly can't afford any payments. 3. Most importantly, you have the right to appeal the overpayment within 90 days. Request a "fair hearing" and they'll review your case. Even if you did make a mistake, sometimes they reduce the amount. 4. Going forward, make sure you report ANY income changes on your SAR7 or immediately if you go over your Income Reporting Threshold (IRT). Your IRT amount should be listed on your last Notice of Action. Don't close your case out of frustration - that actually makes it harder to resolve this issue.

THE SAME THING HAPPENED TO ME LAST YEAR!!!! they said i owed $1,400 for unreported income and i almost had a heart attack. i tried calling for DAYS and couldn't get through to anyone. the automated system just kept hanging up on me. i was about to give up when my friend told me about this service called Claimyr (claimyr.com) that gets you through to a real person at the county office. i was skeptical but desperate so i tried it, and no joke, i was talking to a real worker in like 5 minutes. they have a video demo if you want to see how it works: https://youtu.be/jzISHxCPLwE once i actually talked to someone, they helped me set up a payment plan for only $25/month. way better than trying to pay it all at once!

You need to be extremely carful about your SAR7. Its the #1 reason people get overpayment. I mark on my callender exactly when to submit it every 6 months and i keep ALL my paystubs in a folder. And ALWAYS ALWAYS make copies of everything you turn in!!!! They "lose" paperwork all the time and then blame you. Cash Aid has so many rules its ridiculous but its better than being homeless which is what would happen to me and my kids without it. Just take a deep breath and call your worker to set up a payment plan.

This is exactly why I quit CalWORKs even though I was eligible. The stress and constant worry about overpayments wasn't worth the small amount they gave me. I was always terrified I'd make some tiny reporting mistake and end up owing hundreds or thousands. And the workers never explain things clearly. I'm sorry you're dealing with this, but honestly, sometimes it's better to just find other ways to make it work without government help that comes with so many strings attached.

I had something similar happen and they let me set up a 24-month payment plan. They actually take a percentage of your grant instead of a fixed amount, which is pretty fair. Keep in mind that even if you close your case, the overpayment doesn't go away. They can collect it through tax intercepts, wage garnishment, or if you ever get benefits again in the future. As for your concern about working more hours - just make sure you report your income properly going forward. If your income goes over your IRT (Income Reporting Threshold), you have to report it within 10 days, not just wait for your next SAR7. If you do that, you won't end up with another overpayment. BTW, did they reduce your benefits as a recoupment (taking money to pay back the overpayment) or did they reduce it because your income is higher now?

One more thing I forgot to mention - if you're having trouble with the overpayment, you can contact your local legal aid office. They provide free legal help for people with CalWORKs issues, including overpayments. Google "legal aid" plus your county name to find them. Also, if paying back the overpayment would cause you "undue hardship" (like not being able to pay rent or utilities), you can request a hardship waiver. It's not easy to get, but worth trying if you're in a really tough spot. Don't give up on benefits completely - the system is complicated, but once you understand the reporting rules, it gets easier to avoid these situations in the future.

I've been through this exact situation and I want to reassure you that it's not as hopeless as it feels right now. The most important thing is to act quickly and know your rights. First, call your worker ASAP and request form CW 2200 (Request for Overpayment Repayment Agreement). You can negotiate a payment plan as low as $10-25/month depending on your circumstances. Don't let them pressure you into agreeing to more than you can afford. Second, you have 90 days from the date of the overpayment notice to request a fair hearing if you want to dispute it. Even if you did make a mistake, sometimes they'll reduce the amount or find errors in their calculation. Third, regarding your reduced benefits - if your income has dropped since December, you need to report that change immediately. They should recalculate your grant based on your current income, not what you were making in December. The key thing about reporting income going forward: you must report within 10 days if your income goes over your IRT (Income Reporting Threshold). This amount should be listed on your Notice of Action. As long as you stay under that threshold, you only need to report on your SAR7. Don't close your case out of frustration - that actually makes collections more aggressive. Stay on the program and work with them to resolve this. You've got this!