Does CalWORKs request tax returns for self-employed partners? Never asked but worried

Yes, CalWORKs can absolutely request tax returns as verification for self-employment income. While they often accept self-declared income statements initially, they have the right to request more formal documentation like tax returns, especially during investigations or audits. The county is supposed to verify income through the most reliable source available. For self-employment, this typically includes business records, receipts, tax returns, and accounting records. If they haven't asked for tax returns yet, it could simply be that your worker is satisfied with the current documentation. However, it's always best to have your tax records organized and accurate. Make sure what your partner is reporting to CalWORKs matches what's being reported on your taxes. Discrepancies between these two can definitely trigger investigations.

they never asked my bf for his taxes and hes been self employed 4 years. they just make him fill out that form every month with the jobs he did. i think ur fine

They ABSOLUTELY look at taxes!! I got hit with a massive overpayment because my husband's tax return from 2024 showed way more business income than what we had been reporting on his monthly statements for Cash Aid. They did a case review for some random reason and BAM - $4,680 overpayment notice in the mail! Now they're taking money out of our current benefits to pay it back. The worker said they can look back up to 3 YEARS and compare what you reported vs what's on your taxes. And if the difference is big enough they can even refer for fraud investigation which is SCARY!!! I really wish I had just been honest from the beginning.

Their system automatically checks with FTB (California tax) and IRS periodically. They don't need to specifically ask you for the returns because they can access that info through computer matching. That's usually how people get caught with unreported income. My sister-in-law used to work for the county and said they do these database matches regularly, but they're sometimes a year or more behind because of backlogs. So you might think you're fine, but then boom - they catch up and suddenly you're dealing with overpayment notices.

I work as a tax preparer and I've seen this issue come up ALL THE TIME with my clients on benefits. Here's the deal: 1. CalWORKs uses "current income" rules, meaning they want to know what you're earning NOW 2. Tax returns show what you earned LAST YEAR 3. The computer systems do eventually match these up My advice: tell your partner to keep VERY detailed records of ALL jobs, expenses, and income. Make sure what he reports monthly to CalWORKs is accurate and complete. If there are legitimate business expenses that reduce his net income, make sure those are documented too. Also, I'd recommend volunteering the tax return at your next redetermination. Better to address any discrepancies proactively than to have them come after you later.

Uggg ive been on hold with calworks for 3 HOURS trying to ask this exact question!!!! My bf started doordash and we dont know how to report it right. This is so frustrating i cant even get basic answers!!!!!

To clarify for everyone: Self-employment for CalWORKs is NET income (gross minus business expenses). For example, if your partner makes $1000 in handyman work but spends $300 on materials, only $700 counts as income for CalWORKs purposes. However, you MUST keep receipts for all expenses you deduct. If they request verification and you can't provide evidence of these expenses, they'll count the full amount as income. Regarding taxes specifically: Counties can and do use tax returns as verification, but they typically focus on more recent income since eligibility is based on current circumstances. That said, significant discrepancies between tax filings and what you've reported to CalWORKs can trigger investigations.

Thanks everyone for the replies! I think I'm going to start keeping better records of everything and make sure what we report monthly matches what goes on the tax return. I'll bring copies of our 2024 return to our next redetermination appointment in September just to be safe. Better to be upfront than deal with overpayments later! I really appreciate all the advice.

Just wanted to add my experience - I've been on CalWORKs for 3 years and my husband does landscaping work (self-employed). They asked for his tax returns during our very first application but haven't asked since then. However, our worker did tell us that they randomly audit cases and can request documentation going back several years. What really helped us was creating a simple spreadsheet to track his monthly income and expenses. We keep all receipts in a shoebox and update the spreadsheet weekly. This way, when we fill out the monthly reporting forms, we have exact numbers that will match our tax return at the end of the year. Also, don't forget that you can deduct mileage for work-related driving! For handyman work, that's usually driving between job sites. It's 65.5 cents per mile for 2023 taxes. Keep a log of work miles - it can significantly reduce your net income calculation.