Do I need to file taxes if my family gets CalWORKs Cash Aid and Medi-Cal?
I started receiving CalWORKs Cash Aid for me and my 2 kids about 8 months ago after I lost my job. We also get Medi-Cal coverage. I've never really understood taxes and usually just went to H&R Block before. Now I'm confused because I only worked for like 3 months last year before getting laid off, and then got unemployment for a while before applying for Cash Aid. Does anyone know if I still need to file taxes this year? Will my Cash Aid count as income? I'm worried because I don't want to mess anything up with my benefits. I've heard different things from people at the county office and my sister-in-law who also gets benefits. Some say I have to file, others say I don't need to if my income was under a certain amount. So confused!
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Amara Adebayo
Yes, you should still file taxes! Cash Aid (CalWORKs) isn't considered taxable income by the IRS, so you don't report it as income on your tax return. Same for Medi-Cal benefits - they're not taxable. BUT your unemployment benefits ARE taxable, and you should have received a 1099-G form showing how much you got. Also, if you worked those 3 months, you'll get a W-2 from that employer. It sounds like you might qualify for the Earned Income Tax Credit (EITC) since you have kids and had some work income. You could get money back even if you don't owe taxes. There are free tax preparation services through VITA if you don't want to pay H&R Block.
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PixelWarrior
AuthorThank you! I did get that 1099-G form in the mail but wasn't sure what to do with it. So the Cash Aid won't affect my taxes at all? That's a relief. I'm still confused about whether I HAVE to file though if my income was really low? The W-2 from my old job only shows about $9,800 for those 3 months.
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Giovanni Rossi
u should absolutly file!! my cousin didnt file when she was on cash aid and then they came after her 2 yrs later for the unemployment she didnt report!! its a mess for her now. also u might get a big refund with kids especially with earned income credit thing
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PixelWarrior
AuthorOh wow that sounds stressful for your cousin! I definitely don't want that happening to me. So even though the Cash Aid isn't taxable I should still file because of the unemployment and the little bit I worked? Do you know how I can find those free tax places the other commenter mentioned?
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Fatima Al-Mansour
I've been on CalWORKs for 2 years now and I ALWAYS file taxes. Like the first person said, your Cash Aid isn't taxable income, but there are so many benefits to filing: 1. You'll probably qualify for the Earned Income Tax Credit 2. You might get the Child Tax Credit too 3. If you paid for childcare while you were working, there's a credit for that With your income level and having kids, you'll likely get a nice refund. The IRS Free File program lets you file for free if your income is under $73,000. Or look up VITA (Volunteer Income Tax Assistance) sites near you - they'll do your taxes for free if you make under about $60,000.
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Dylan Evans
This is great advice. I'll add that filing taxes doesn't affect your CalWORKs eligibility at all. In fact, tax refunds don't count as income for CalWORKs. The refund won't affect your benefits. Here's something important though - if you get a large refund, it won't count as a resource (asset) for CalWORKs for 12 months after you receive it. After that, if you still have some of that money saved and it puts you over the resource limit ($10,000 in 2025), then it could affect your eligibility. So just plan to use that refund within 12 months and you're good!
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Sofia Gomez
isnt there a cutoff where u dont have to file if u make under like $12k or something? im confused about this too bc my worker never mentions anything about taxes when we do my redetermination
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Amara Adebayo
Yes, there is! If you're single and under 65, you technically don't have to file if your income is under $12,950 for 2024 taxes. BUT - and this is a big but - you should still file because you'll likely get money back through credits like the EITC, especially if you have kids. Your CalWORKs eligibility worker doesn't typically discuss taxes because they're separate systems. CalWORKs is through the county/state, while taxes are federal (and state). Your worker is focused on determining your eligibility for benefits, not your tax obligations.
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StormChaser
i tried calling the irs last year to ask this EXACT question and was on hold for 2 HOURS before getting disconnected!!! so frustrating trying to get answers about this stuff. i ended up just filing anyway because i was scared of getting in trouble but my sister didn't file and nothing happened to her so who knows 🤷♀️
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Dmitry Petrov
You might want to try Claimyr if you need to reach the IRS or CalWORKs by phone. I was having the same problem with endless holds and disconnects when I needed to talk to someone about my CalWORKs case. Claimyr got me through to a real person in like 20 minutes instead of waiting for hours. They have a video showing how it works at https://youtu.be/jzISHxCPLwE. Saved me so much frustration when I needed to sort out my Cash Aid payment issue.
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Dylan Evans
I work as a tax preparer, and here's what you need to know: 1. CalWORKs Cash Aid is NOT taxable income 2. Medi-Cal benefits are NOT taxable 3. Unemployment IS taxable income 4. With children and some earned income, you SHOULD file because: - You'll likely qualify for Earned Income Credit - You'll likely qualify for Child Tax Credit - These can result in thousands of dollars in refunds While technically you might not be required to file if your income is below the filing threshold ($12,950 for single filers in 2024), you'd be leaving money on the table by not filing. The IRS and CalWORKs are separate systems. Your tax refund will NOT count as income for CalWORKs, and as someone mentioned, refunds are excluded from resource limits for 12 months after receipt.
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PixelWarrior
AuthorThank you so much for this clear explanation! I didn't realize I could actually get money back even though I barely worked. I guess I'll definitely file then. One last question - does it matter if I do it myself using the free file or go to a VITA site? Is one better than the other?
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Amara Adebayo
Either option is good! If you're comfortable using a computer, the Free File options through the IRS website are user-friendly and guide you through everything. If you prefer having someone help you in person, VITA sites are staffed by IRS-certified volunteers who specialize in tax situations like yours. They'll make sure you get all the credits you're entitled to. Just bring your ID, Social Security cards for everyone on your return, and all your tax documents (W-2, 1099-G for unemployment, etc.). And don't worry about your CalWORKs - filing taxes won't affect your benefits at all. The systems don't automatically share information in that way.
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PixelWarrior
AuthorThis is so helpful! I think I'll look for a VITA site near me since I'd feel better having someone guide me through it. I get nervous about making mistakes on important forms. Thanks everyone for all the great advice - I feel much better about this now!
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William Rivera
Just wanted to add that if you're still nervous about doing your taxes, many community colleges and nonprofit organizations also offer free tax prep help during tax season. I used one last year when I was on CalWORKs and they were super patient explaining everything to me. Also, keep copies of everything! Your CalWORKs case file, all your tax documents, and your filed return. It helped me when I had questions later about my benefits. The tax preparer told me that having kids and low income usually means you'll get money back, not owe anything, so don't stress too much about it. One more thing - if you move or change your address, make sure to update it with both the IRS and your county CalWORKs office so your refund doesn't get lost in the mail!
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