Will CalWORKs find out if I reported less income than what's on my tax return?

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.

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.

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.

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!!

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

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.

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.

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.

I went through something similar a few months ago. My aunt sent me money for my car repair and I was so stressed about whether to report it or not. I ended up calling the CalWORKs hotline and they told me that legitimate gifts from family members don't count as income, but you're still supposed to report them on your SAR 7 so they can verify it's actually a gift and not payment for work or something else. The worker said it's always better to report and let them decide rather than not report at all. When I did report it, they just asked for a simple statement from my aunt saying it was a gift with no expectation of repayment, and my benefits didn't change. The key is being upfront about it. Since you're planning to call your worker anyway, maybe mention that you want to make sure you're reporting everything correctly going forward so this doesn't happen again.

I've been following this thread and wanted to share some practical tips for anyone in a similar situation. First, when you do reach your worker, be prepared with specific details - the exact amount, date received, and your brother's contact info in case they need verification. Second, if you haven't already, start keeping a simple log of any money you receive (even gifts) with dates and sources - it makes reporting so much easier. Third, don't be surprised if they ask you to complete a "Report of Gift" form or something similar. Most counties have a standard process for this. The good news is that genuine family gifts are usually pretty straightforward to verify and resolve. The fact that you're being proactive about this instead of waiting for them to discover it shows good faith, which workers do notice and appreciate. Hang in there - you're doing the right thing by addressing it head-on!

I just want to say how much I appreciate seeing this community come together to help someone navigate this stressful situation. As someone new to CalWORKs myself, I was honestly scared to ask questions because I didn't want to seem like I was doing something wrong. Reading through everyone's real experiences and advice makes me feel like there are people here who actually understand what it's like to be in these situations. The practical tips about keeping records, getting things in writing, and being proactive rather than waiting for problems to be discovered are so valuable. It's clear that while the system can be intimidating, being honest and asking for help when you need clarification is the way to go. Thank you to everyone who shared their stories - you're making it easier for newcomers like me to feel confident about navigating this process correctly.

I'm new to CalWORKs and this thread has been incredibly helpful! I had no idea that gifts needed to be reported even if they don't count as income. Reading everyone's experiences makes me realize how important it is to be transparent about everything and let the workers make the determination rather than trying to figure out the rules myself. @GalacticGuru I think you're being really smart by calling your worker proactively - from what everyone is saying, that honesty will definitely work in your favor. I'm going to start keeping a log of any money I receive like @Isaac Wright suggested, even small amounts from family, just to make my future reports easier and more accurate. Thank you to everyone who shared their real experiences - it's made me feel much more confident about navigating this system correctly!

As someone who just started receiving CalWORKs benefits last month, this entire discussion has been incredibly eye-opening and honestly a bit overwhelming. I had no idea there were so many nuances to what needs to be reported versus what counts as income. Reading through everyone's experiences, it's clear that the safest approach is to report everything and let the workers decide, but I'm curious - is there a comprehensive guide somewhere that explains all the different types of income/money we might receive and how they should be handled? Things like gifts, loans from family, selling personal items, etc.? I feel like I'm walking through a minefield not knowing what might trigger issues down the road. The community support here is amazing though - seeing how people share real experiences and practical advice makes me feel like I'm not alone in trying to navigate this correctly. @GalacticGuru I really admire your courage in addressing this proactively rather than hoping it goes unnoticed!