Filing taxes on CalWORKs when unemployed - child tax credit questions

CalWORKs Cash Aid isn't taxable income, so you don't need to report it on your tax return. However, you should still file taxes even without employment income! You can absolutely claim the Child Tax Credit for your children. For 2025, it's up to $2,000 per qualifying child under 17. Also look into the Child and Dependent Care Credit if you paid for childcare while looking for work. The Earned Income Tax Credit (EITC) usually requires earned income, but there are special provisions sometimes. You might want to use a free tax service like VITA (Volunteer Income Tax Assistance) - they specialize in helping low-income families maximize their refunds. Many VITA sites operate at community centers from January through April.

u dont need to show prooof of calworks cuz its not taxable so theres nothng to prove. i didnt work last year eather and still got like $4600 back from the IRS becuz of my kids. the child tax credit is the BIG one but theres others too. go to the VITA thing the other person said they do it for FREE and find all the credits.

Be careful with tax advice from forums! While it's true Cash Aid isn't taxable, tax credits work differently year to year. For 2025, you need some earned income for the full EITC, but the Child Tax Credit can be partially refundable even without income. The specific amounts change based on your situation and current tax laws. Your best bet is to use IRS Free File (if your income is under $73,000) or find a VITA site near you by calling 800-906-9887. They're IRS-certified volunteers who will help you file accurately and get EVERY credit you're entitled to. One important tip: if you did ANY work in 2024, even part-time or gig work, make sure to report it. Even a small amount of earned income can qualify you for bigger tax credits.

Technically, yes, you should report any income including cash payments for services like babysitting. That would be considered self-employment income. The good news is that having some earned income (even just $600) can help you qualify for the Earned Income Tax Credit, which could be worth more than $3,900 with two children depending on your total income. You'd report this on Schedule C-EZ (Net Profit from Business) and Schedule SE (Self-Employment Tax). Don't worry about not having forms - for cash payments under $600 from an individual, they aren't required to give you a 1099 anyway. This is exactly why VITA services are so helpful. They'll walk you through everything for free. I HIGHLY recommend using them rather than trying to figure all this out on your own.

I was in your exact situation last year! On CalWORKs with my kids, no job. I tried calling the county to ask about taxes but kept getting disconnected or told to call some other department. So frustrating! I ended up using Claimyr.com to get through to a real person at the county who confirmed Cash Aid isn't taxable. They have this service where they call for you and then connect you when a real person answers. There's a video showing how it works here: https://youtu.be/jzISHxCPLwE After that, I went to a VITA site like others suggested and got amazing help with my taxes. Got back over $4,000 with the child credits! Definitely do your taxes even with no job income!

Just to clear up some confusion in this thread - yes, you can get a substantial tax refund even without traditional employment, but the amounts vary widely based on your specific situation. The Child Tax Credit is worth up to $2,000 per child, and a portion can be refundable (meaning you get it even without owing taxes). The American Rescue Plan temporarily expanded these credits in 2021, but for 2025, we're back to regular rules. A small amount of earned income (like your babysitting) can help qualify you for more credits, though. And yes, technically all income should be reported, even cash payments. The VITA volunteers will help you navigate this correctly without getting into trouble.

To clarify: 1. CalWORKs Cash Aid is NOT taxable and NOT reported on your tax return 2. You SHOULD still file taxes to claim refundable credits 3. Child Tax Credit - up to $2,000 per child under 17 4. Any earned income (even small amounts) helps you qualify for EITC 5. WTW counselors focus on employment, not tax advice (though I agree they should mention it) The IRS has a special page about tax benefits for families: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc And to find free tax preparation sites near you, visit: https://irs.treasury.gov/freetaxprep/ or call 800-906-9887 Don't miss out on these credits - they're specifically designed to help families with children, especially those with lower incomes.

I'm so glad you found all this helpful information! As someone new to the CalWORKs system, I'm learning a lot from this thread too. One thing I wanted to add - when you go to the VITA site, bring any documents you have like your CalWORKs award letter, Social Security cards for you and your kids, and any records of that babysitting income (even if it's just a note you wrote yourself with dates and amounts). Also, I've heard that some VITA sites get really busy during peak tax season, so it might be worth calling ahead to make an appointment or ask about their busiest/slowest times. The fact that you can potentially get thousands back in credits is amazing - that money can really make a difference for families like ours!