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Mei Chen

Forgot to report investment income on CalFresh application - worried about penalty

I messed up on my CalFresh application and I'm freaking out. When I applied, I reported the $250 my parents give me monthly but completely forgot to include that I have some stocks that made me about $480 last quarter. I just realized my mistake after getting approved for low-income benefits. I tried calling the county office like 6 times but kept getting disconnected. Even went on BenefitsCal to try reporting it there but couldn't figure out how to update income after approval. Will I get in trouble for unreported income? Can they charge me with fraud? I'm not trying to hide anything - it seriously slipped my mind since I don't consider myself an "investor" - it's just a tiny account my uncle set up for me years ago. Should I keep trying to call? Send a letter? Go in person? I don't want to lose my benefits or get penalized!!

You need to report this ASAP!!! Its not worth risking fraud charges over $480. The county WILL find out when tax seasons comes. I had a similar thing happen when I didnt report some side gig money and they made me pay back ALL my benefits plus a 30% penalty. they can even press criminal charges if they think you did it on purpose.

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Mei Chen

Author

OMG that's exactly what I'm afraid of! I swear it wasn't intentional. Did they make you pay back the whole amount or just the extra you would've gotten? I'm a student and seriously can't afford any penalties right now.

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Take a deep breath - this is a pretty common mistake and you're clearly trying to fix it, which counts for a lot. Since you're attempting to report it voluntarily before they discover it, that shows good faith. Here's what you should do: 1) Document your attempts to report it (screenshots of calls, BenefitsCal login attempts, etc) 2) Write a dated letter explaining the situation and keep a copy for yourself 3) Deliver the letter in person to your county office and get a receipt or confirmation 4) If you can't go in person, send it certified mail so you have proof they received it The stock income might affect your benefit amount, but voluntary reporting before they discover it usually just results in an adjustment going forward, not penalties or fraud accusations. CalFresh looks at monthly income, so they'll calculate how that $480 breaks down monthly.

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Mei Chen

Author

Thank you so much for the detailed advice! I'll draft a letter tonight and try to get to the office tomorrow. Should I bring bank statements showing the investment income too? Also, do you know if they'll reduce my benefits going forward or will I have to pay something back?

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same thing happened to my cousin last year he forgot to put his doordash income and they made him do a phone interview to explain. they were pretty understanding since he called them first before they caught it. just keep trying to report it

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I think you're overthinking this. CalFresh has something called the Income Reporting Threshold (IRT) - they give you this number on your approval letter. As long as your TOTAL income doesn't go over that IRT, you don't have to report income changes until your next SAR 7 or recertification. So check what your IRT is before panicking. Also $480 over 3 months is only like $160/month which probably won't even impact your benefits that much tbh.

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This isn't quite accurate. The IRT applies to changes AFTER your application is approved, but you're still required to provide complete and accurate information on your initial application. Since OP was just approved, it sounds like this was an error on the original application, which does need to be corrected. However, I agree that $160/month in additional income may not dramatically change the benefit amount depending on OP's situation. And voluntarily reporting now is definitely the right move rather than waiting.

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Have you tried using Claimyr to reach someone at the CalFresh office? I was in a similar situation last month and couldn't get through on the regular line - kept getting disconnected after waiting forever. I found this service called Claimyr (claimyr.com) that actually calls and waits on hold for you, then connects you when a real person answers. Saved me hours of frustration. They have a video showing how it works: https://youtu.be/jzISHxCPLwE This way you can explain directly to a worker, get it documented in their system right away, and have peace of mind. Much better than stressing about whether your letter got lost or something.

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Mei Chen

Author

I've never heard of that service but I'm definitely going to check it out. I spent over an hour on hold yesterday before getting disconnected AGAIN. Having someone else wait on hold sounds amazing right now.

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Be carful u don't get some1 who just wants to cause troble. My friend reported extra income and the worker was having a bad day or somthing and decided to do a full investigation on her case and found other small mistakes and gave her a ton of overpaymant notices! Sometimes its better to just wait till ur next SAR7 to report it.

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I understand your concern, but I really wouldn't recommend this approach. Intentionally waiting to report known incorrect information on an application can potentially be viewed as fraud, while making an honest mistake and promptly trying to correct it is generally treated much more leniently. What happened to your friend is unfortunate, but the potential consequences of deliberately not reporting when you know there's an error are usually much worse than dealing with the correction process, even if it's frustrating.

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Everyone has given good advice here. I just want to add that CalFresh does distinguish between honest mistakes and intentional fraud. The fact that you're actively trying to report this shows you're acting in good faith. Technically, since this was income that existed when you applied, you should have reported it on your application. However, stock income can be confusing since it's not like regular paychecks. When you do connect with a worker, explain that you didn't understand it counted as reportable income. If your stock earnings plus your other income still keeps you within the eligibility limits, they'll likely just adjust your benefit amount going forward. If it would have made you ineligible, they might calculate an overpayment that you'd need to repay. For future reference, the SAR 7 form (Semi-Annual Report) that you'll need to submit every 6 months requires you to report ALL income received in the report month, including investment income. Make sure to include everything on that form to avoid these issues going forward.

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Mei Chen

Author

Thank you for the clear explanation! I finally managed to speak with someone at the county office today after using that call service someone suggested. The worker said exactly what you mentioned - they'll recalculate my benefits based on the correct income but since I reported it voluntarily, they're just treating it as an adjustment not fraud. My monthly benefit will go down by about $42 but that's way better than penalties or losing everything. Definitely learned my lesson about being thorough on those forms!

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I'm so glad you were able to get through and resolve this! Your experience is a perfect example of why it's always better to report voluntarily rather than wait. A $42 reduction in benefits is definitely manageable compared to the stress and potential penalties you were worried about. For anyone else reading this thread who might be in a similar situation - Mei's story shows that county workers are generally reasonable when you're upfront about honest mistakes. The key things that worked in her favor were: 1) trying multiple ways to report it immediately after realizing the error, 2) documenting her attempts to reach them, and 3) explaining it was an oversight rather than intentional. Thanks for updating us on how it turned out - it's really helpful for the community to see these real outcomes rather than just speculation about what might happen!

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