Intercepting State Tax Refunds and Lottery Winnings
State tax refunds are intercepted if all four conditions below are met:
- The past-due amount on a court case is $150 or more.
- The child support agency knows the Social Security number or Tax Identification number of the parent who owes past-due support.
- The case gets child support services from a local child support agency by either applying for services or being referred from a public aid/benefit program.
- The case is a Wisconsin child support case. If the payer files a state return in another state, Wisconsin might work with that state to intercept that state's refund.
If the four conditions above are met, the paying parent is "certified" for state tax intercept. When certified for state tax intercept, the parent's lottery winnings may also be taken to pay past-due support. Any payments to the parent for providing goods and services to the state of Wisconsin may also be taken and used to pay past-due support.
The intercepted state tax refund first pays current support on all the paying parent's cases certified for tax intercept. Any remaining refund money will go to past-due support on cases certified for tax intercept. If a family gets cash benefits from the W-2 or SSI Caretaker Supplement programs, the family will get part of the current support paid from the intercepted state refund.
After current support, past-due support, and debts are paid off, any remaining refund is sent to the paying parent.
If the paying parent wins a Wisconsin state lottery prize worth $1,000 or more and is certified for state tax intercept, the certified amount will automatically be taken from the prize winnings and used to pay past-due support. The intercepted lottery winnings are paid out the same way as intercepted state tax refunds. The lottery winnings will be intercepted if the parent gets the full jackpot at once, or if the winnings are paid out over time.