Income Reporting Threshold (IRT)

CalWORKs recipients subject to report verbally or in writing within 10 days when their income exceeds the IRT for their AU size, even if the income is received mid-year.

A CalWORKs case with income exceeding the IRT may be discontinued or the grant may be decreased depending on how much income is reported.

There are two tiers for the CalWORKs IRT under SAR and AR/CO rules. If any member of the AU or any member of the family MAP has earned income, the CalWORKs AU is required to report when the total combined gross monthly income, earned and unearned, of all persons included in the family MAP exceeds the lesser of the following two amounts:

• Tier 1 - $1,056 (55% of the FPL for a family of three) plus the amount of income that was last used to calculate the recipient’s benefits, or
• Tier 2 - 130% of the Federal Poverty Level

Because each family will have different amounts of earned and unearned income, the exact amount of income that will make each family ineligible for CalWORKs varies.

If the AU has...	Then they are required to report within 10 days when...
No income or unearned income only,	They receive earnings that, once combined with other household income, exceeds IRT.
Earnings only or a combination of earned and unearned income,	The household’s total income exceeds the IRT.
Unearned income only (including disability-based unearned income),	They receive gross earnings that, once combined with unearned income, exceeds IRT. Note: AU’s with unearned income only, are NOT required to report when that income by itself exceeds the IRT mid-period.

When income exceeds the IRT limit, the EW MUST determine if the AU remains financially eligible for CalWORKs.

If Income Exceeds the IRT Level. . .	Then the EW Will. . .
And is expected to continue at the same level in future months,	Discontinue the case at the end of month following the report with a timely 10-day NOA. Note: If there is no time for a timely NOA, the CalWORKs benefits MUST be issued at the previous level and the EW MUST NOT establish an overpayment.
But is only expected to exceed the IRT level for that one month,	NOT take action to discontinue CalWORKs benefits.

When the combined earned and unearned income is over MAP but under the CalWORKs Tier 2 amount, then the AU may remain eligible for supportive services and/or CalWORKs special needs with a ZBG. Cases with a ZBG must adhere to the same reporting requirements as cases receiving a cash grant and that recipients may request discontinuance at any time.

The informing notice that provides a family’s IRT must be individualized for each AU using “Reporting Changes for Cash Aid and CalFresh” (SAR 2) or (AR 2). The AU must be informed at Intake and at least once per SAR Payment Period or AR/CO Payment Period, or whenever the AU’s IRT changes.

IRT Reporting

When income in excess of the IRT is reported, the worker must determine if the AU remains financially eligible for benefits and if so, recalculate the grant amount for the remainder of the SAR or AR/CO period using the new amount of reasonably anticipated income. A decrease to the grant can only be made after timely and adequate notice is provided. Additionally, the AU’s new IRT amount must be calculated and provided on the SAR 2 or AR 2 required forms.The calculation used by the EW to determine the IRT level for each AU must be clearly documented in the Journal Detail page of CalSAWS.

If a recipient reports income that exceeds the IRT, a determination is required whether the income will continue at that level. If it is determined that the income will not continue at that level, no action can be taken to discontinue or decrease benefits.

If the AU reports an increase in income mid-period report that is not over the IRT, the change will be treated as voluntary and will not result in any decrease in benefits. A “No Change” NOA must be sent.

Example 1Example 1

Example 2Example 2

Zero Basic Grants (ZBG)

A ZBG occurs when an AU is considered to have received a cash aid payment even when:

• The payment is not sent due to penalty which reduced the payment to zero,
• The grant amount is less than $10,
• The grant for the AU is reduced to zero to adjust for a prior overpayment, or
• The grant based on On-The-Job Training is diverted to the employer as a wage subsidy to offset the participant’s wages.
• The AU’s countable earnings exceed the MAP but the gross earnings remain below the Tier 2 IRT.

Benefits of a ZBG case, provided all eligibility requirements are met include:

• Housing and Homeless Assistance;
• WTW supportive services including transportation assistance;
• CalWORKs Stage 1 Child Care;
• Pregnancy and other recurring and non-recurring special needs;
• Home Visiting Program services; and
• Eligibility to CalFresh and cash-linked Medi-Cal.

Note: AUs receiving a ZBG should also be reminded that as CalWORKs recipients, the AU continues to be required to make mandatory reports. Any changes to household circumstances, including the addition of a new member or changes in income, made outside of the SAR 7 and annual redetermination processes, are treated as mid-period reports and would not require a reapplication of aid. Applicants should not be approved with a ZBG.

Related Topics

Financial Eligibility Determination

Applicant Gross Income Test

Recipient Net Income Test

MAP Levels

Examples of MAP Status

Federal Financial Participation

State-Only Payments