Do I need to report tax refund money on my CalWORKs SAR7?
Just filed my taxes and got a bigger refund than I expected ($3,250 with the EITC). Do I have to report this money on my SAR7 for CalWORKs? My six-month report is due next month and I'm scared they'll cut my Cash Aid if I report it wrong. I've heard different things from people - some say tax refunds don't count as income, others say I have to report everything. The money's already in my account and I used some for bills... will this put me over the IRT? Anyone know the right answer? Don't want to mess up my benefits over this!
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Zoe Gonzalez
Tax refunds (including EITC) are EXEMPT and do not count as income for CalWORKs! You DO need to report receiving it on your SAR7 in the section where it asks about money/property received, but make sure to write "TAX REFUND" next to it. Your worker should know it's exempt, but sometimes they make mistakes. Keep a copy of your SAR7 showing you reported it correctly in case there's any confusion later.
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Avery Flores
AuthorOmg thank you!!! I was so worried because I already spent some of it. So I just write it in the "other income" box but put TAX REFUND next to it? And they won't count it for my eligibility? That's such a relief!
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Ashley Adams
my worker told me last year that we dont have to report tax refunds cuz its not income its just your own money they took out of your check all year. but i still wrote it down on my SAR7 just to be safe lol
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Alexis Robinson
thats right! i got confused about this too when I got my refund in Jan. The eligibility worker told me tax refunds are considered 'resources' not 'income' for CalWORKs. you just need to make sure you don't go over the $10,211 resource limit from having too much money saved up altogether.
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Aaron Lee
YES YOU ABSOLUTELY NEED TO REPORT IT!!! But don't panic - it won't count against your CalWORKs grant. I didn't report mine 2 years ago because someone told me I didn't have to, and they hit me with an overpayment for "failure to report" even though the money itself was exempt!!! The county is LOOKING for reasons to cut people off. Always report EVERYTHING on your SAR7 even if it doesn't count as income. They can discontinue you just for not reporting, even if the money wouldn't have affected your eligibility!!!
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Avery Flores
AuthorThat's scary! I'll definitely report it then. So weird that you can get in trouble for not reporting something that doesn't even count against you! The whole system is designed to trip people up I swear.
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Chloe Mitchell
To clarify what everyone's saying: tax refunds are exempt as income AND as a resource for CalWORKs for 12 months after you receive it. This means: 1. You DO need to report receiving it on your SAR7 2. It will NOT count against your income limit/IRT 3. It will NOT count against your $10,211 resource limit for 12 months Be sure to write "TAX REFUND" clearly on your SAR7. If you get a Notice of Action reducing your benefits after reporting it, immediately call your worker to point out their error and request a hearing if necessary.
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Michael Adams
Great advice. I'd add that you should save a copy of your tax return too, just in case they ask for verification. And yes - that 12-month exemption from resource limits is key! After reporting mine last year, I got a verification request asking for my bank statements. I had to point out to my worker that tax refunds were exempt since she was trying to count it toward my resource limit.
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Ashley Adams
wait is EITC part of the tax refund thats exempt? i thought that was different cuz its extra money not just what u paid in taxes??
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Zoe Gonzalez
Yes, the Earned Income Tax Credit (EITC) portion is also exempt! The entire tax refund including all tax credits (EITC, Child Tax Credit, etc.) is exempt for CalWORKs purposes. Good question though - the rules can be confusing.
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Natalie Wang
I spent 3 days trying to reach someone at my county office last month to ask this EXACT question. Kept getting disconnected or stuck on hold forever. Finally I tried using Claimyr.com to get through - they got me connected to a real person in about 10 mins. The worker confirmed tax refunds don't count as income but DO need to be reported. Their video demo (https://youtu.be/jzISHxCPLwE) shows how it works if you need to call about this or other issues. Totally worth it when you need answers quickly.
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Alexis Robinson
does that service rly work? ive spent HOURS trying to get thru to my worker this month. im gonna check it out
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Michael Adams
Reading through this reminded me of my SAR7 nightmare last year. I reported everything correctly, including my tax refund marked as "TAX REFUND," but they still cut my benefits claiming I was over income. Had to get a fair hearing to fix it because my worker combined my tax refund with my regular income even though it's exempt! Make sure you keep ALL documentation - your tax return, bank statements showing the deposit, and a copy of your SAR7. Be prepared to advocate for yourself if they make a mistake.
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Avery Flores
AuthorThat's so frustrating! I'll definitely keep copies of everything. Did they restore your benefits after the hearing? How long did that whole process take?
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Michael Adams
They did restore my benefits and gave me retroactive payments, but it took about 6 weeks to resolve. The hearing was actually scheduled for 8 weeks out, but once I filed for the hearing, a supervisor reviewed my case and fixed the error before we ever got to the hearing date. Still stressful though!
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Avery Flores
Thanks everyone for the helpful answers! I'm going to report the tax refund on my SAR7 but clearly mark it as TAX REFUND. I'll also keep a copy of everything just in case. It's a relief to know it won't count against my Cash Aid eligibility. This system is so complicated sometimes!
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Chloe Mitchell
You're doing the right thing. One last tip - when you submit your SAR7, ask for a receipt or confirmation showing they received it. This is important if they ever claim they didn't get it. And if anything changes with your benefits after reporting, contact your worker immediately to get clarification. Best of luck!
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Carmen Diaz
This thread has been so helpful! I'm new to CalWORKs and just received my first tax refund since being on benefits. I was panicking because I didn't know the rules. Reading everyone's experiences makes me feel more confident about reporting it correctly. One question though - if I got my refund deposited into the same bank account where my CalWORKs benefits go, will that make it easier for them to verify when I report it on my SAR7? Or does it not matter which account it went into?
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