Will CalWORKs find out if I reported less income than what's on my tax return?
I'm worried about something with my CalWORKs Cash Aid. Last year my brother gave me some money that went into my bank account, and I reported it as a gift on my taxes. I didn't report it to my CalWORKs worker because it was just a one-time thing to help with my son's birthday and Christmas. Now I'm scared they might check with the IRS and see a higher amount on my tax return than what I've been reporting on my SAR 7. Does CalWORKs automatically check IRS records? If they find out, will they lower my benefits or make me pay money back? I'm a single mom with 2 kids and can't afford to lose my Cash Aid.
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Amara Nnamani
Yes, CalWORKs does periodically compare income information with other agencies, including the IRS and California tax information. It's part of their Income and Eligibility Verification System (IEVS). If they find a discrepancy between what you reported to them and what's on your tax return, they can initiate what's called a "fraud investigation" and potentially establish an overpayment that you'd have to pay back. They can even reduce your current benefits to recoup past overpayments. In the future, you should report all income and gifts according to the CalWORKs rules, even if it's a one-time thing.
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Giovanni Mancini
omg they dont need to scare them like that! a gift isnt even countable income for calworks!! as long as it was truly a gift and not payment for work, u should be fine. calworks doesnt count gifts as income for eligibility.
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Fatima Al-Suwaidi
I was in a similar situation last yr. My dad sent me money for my daughters bday but I didn't report it because I thought gifts didn't count? Then at my renewal interview, the worker asked about deposits in my bank account that didn't match my pay stubs. They did lower my benefits for 3 months and I had to show proof it was a gift. They made me get a statement from my dad!!!! Its so embarassing having to ask family to write letters. Now I report EVERYTHING even if I think it doesn't count and let them decide. Better safe than sorry.
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GalacticGuru
AuthorOh no...that's exactly what I'm afraid of. Did they just notice it from your bank statements or did they actually check with the IRS? I'm wondering how they find these things out.
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Dylan Cooper
To clarify some misinformation here: CalWORKs and IRS have different rules for what counts as income. A true gift (with no expectation of repayment or services) is NOT counted as income for CalWORKs eligibility, but you still should report it on your SAR 7 and let the county determine if it's countable or not. However, CalWORKs does participate in income verification through the IEVS system, which includes tax return data. If they notice a significant discrepancy, they may ask for clarification. The issue isn't that you received a gift - it's that you didn't report it and let them determine if it was countable or not. If they do discover unreported income, several things can happen: 1. They may just ask for verification/explanation 2. They might calculate an overpayment 3. If they believe you intentionally concealed income, they could pursue an Intentional Program Violation My advice: call your worker, explain the situation honestly, and provide documentation that it was a gift.
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Sofia Morales
This is good advice but trying to reach a CalWORKs worker these days is a nightmare. I spent 3 weeks trying to get through about unreported income. After getting disconnected dozens of times, I used Claimyr.com and got through in 15 minutes. They called the CalWORKs office for me and connected me directly to a worker. You can see how it works here: https://youtu.be/jzISHxCPLwE. Seriously saved me so much frustration.
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StarSailor
THE COUNTY WORKERS R ALWAYS LOOKING TO CUT PPL OFF!!! They 100% check IRS records & bank statements & everything. My cousin lost her benefits for 6 MONTHS bcuz she didn't report $2000 from a side job!!! They made her pay it ALL back! The system is designed to TRAP U and PUNISH U for trying to get ahead!!! CalWorks, EBT, Calfresh - they ALL share info with eachother and the IRS. DONT TRUST THEM!!
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Dylan Cooper
A side job is earned income, which is very different from a gift. Earned income absolutely must be reported and does affect CalWORKs benefits. The situation you're describing involved intentionally hiding work income, which is different from the original poster's question about a gift that wasn't reported.
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Dmitry Ivanov
this happnd to my neibor and she just had to fill out a form sayin it was a gift and her benefits didnt change. but ya they do check sometimes
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GalacticGuru
Thank you everyone for all this information. I honestly didn't realize I needed to report gifts too. I thought only work income counted. I'm going to call my worker tomorrow to explain the situation. I hope they understand it was just a misunderstanding and not me trying to hide anything. I'm really scared about losing our Cash Aid even temporarily.
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Amara Nnamani
That's the right approach. Be honest about what happened, bring any documentation you have that proves it was a gift (like messages with your brother about the gift, or have him write a statement). In the future, report everything on your SAR 7 and Semi-Annual Report, even if you think it might not count - let your worker make that determination. If you explain the situation proactively before they discover it in a review, it usually goes much better.
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Fatima Al-Suwaidi
Hey just wanted to give u an update - I asked my current worker about this recently and she said CalWORKs doesn't routinely check IRS records for everyone. They usually only do intensive reviews like that if something looks suspicious on your reports or if you're randomly selected for a fraud prevention review. So don't panic! Just be honest with them moving forward and you should be ok.
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GalacticGuru
AuthorThank you, that makes me feel a bit better. I called my worker but got voicemail. I'll keep trying and hopefully can explain everything before it becomes a bigger issue.
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Harper Collins
Just wanted to add that you should also keep records of the conversation when you do reach your worker. Take notes on what they tell you, get their name, and if possible ask them to send you something in writing about their decision. I learned this the hard way when different workers told me different things about the same situation. Having documentation protects you if there's any confusion later. Also, if they do determine there was an overpayment, you can usually set up a payment plan or have them deduct small amounts from future benefits rather than paying it all back at once.
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