Do I need to file taxes if my family gets CalWORKs Cash Aid and Medi-Cal?

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.

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

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.

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

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 🤷‍♀️

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.

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.

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!

I went through this exact same situation last year! I was so worried about filing taxes while on CalWORKs, but it turned out to be one of the best decisions I made. I got back over $3,000 between the Earned Income Credit and Child Tax Credit, even though I only worked part of the year before going on Cash Aid. The most important thing to remember is that CalWORKs and Medi-Cal benefits are NOT taxable income - you don't report them anywhere on your tax return. But definitely report that unemployment and your work income from those 3 months. I used a VITA site and they walked me through everything step by step. The volunteer even explained how the refund wouldn't affect my CalWORKs benefits, which was my biggest worry. You can find VITA locations on the IRS website - just search "VITA sites near me" and it'll show you all the free tax prep locations in your area. Don't let the confusion stop you from filing - you're almost certainly going to get money back, not owe anything!

I'm in a very similar situation! I've been on CalWORKs for about 6 months now with my daughter, and tax season always makes me anxious. Reading through all these responses has been so helpful - I had no idea about the Earned Income Tax Credit or that my Cash Aid wouldn't count as taxable income. I think I'm going to try one of those VITA sites too. I used to go to one of those chain tax places and pay like $200+ to get my taxes done, but with money being so tight on Cash Aid, the free options sound much better. Plus it sounds like they really know how to help people in our situation. Has anyone here had experience with getting their refund direct deposited while on CalWORKs? I'm wondering if there are any issues with that or if it's better to get a paper check. I don't want anything to accidentally interfere with my benefits, even though everyone's saying it won't count as income.

I'm also new to navigating taxes while on CalWORKs and this thread has been incredibly helpful! I've been putting off filing because I was so confused about whether my Cash Aid would mess things up somehow. It's really reassuring to see so many people confirming that CalWORKs benefits don't count as taxable income and that filing could actually get me money back through those tax credits everyone's mentioning. I had no idea about the VITA program either - free tax help sounds perfect since I definitely can't afford to pay one of those expensive tax services right now. One quick question for anyone who's used VITA before - do you need to make an appointment or can you just walk in? I'm trying to plan around my work training program schedule. Also, is there anything specific I should bring besides the usual tax documents that might be relevant to being on CalWORKs? Thanks to everyone who's shared their experiences - it's made this whole process feel way less overwhelming!