Wisconsin Department of Children and Families

Protecting Children, Strengthening Families, Building Communities

Disclaimer

 

 

Intercepting Federal Tax Refunds

Criteria

Federal tax refunds are intercepted if the case meets all three conditions below:

  1. The past-due amount owed to the family is $500 or more on a court case -OR- $150 or more if part of the past-due amount is owed to the state.
  2. The child support agency knows the Social Security number or Tax Identification number of the parent who owes past-due support.
  3. The case gets child support services from a local child support agency.

If the three conditions above are met, the paying parent is certified for federal tax intercept.

Who Gets the Federal Tax Refund?

  • Intercepted federal tax refunds pay debts that are owed to the state first, and then pays the past-due support owed to the family.
  • If the family no longer gets cash benefits, and no birth costs or AFDC debts are owed, the family will get the intercepted tax refund.

Holds on Joint Refunds

  • Refunds intercepted from federal joint returns are held for six months.
  • The paying parent gets credit for the refund immediately in the child support system.
  • The hold protects the parent who receives the money from having to repay intercepted refunds if the IRS recalls the payment.
  • The hold does not guarantee that the IRS will not recall the intercepted refund after the six months.
  • After the six month hold, the Trust Fund sends the money to the parent receiving support.

More Tax Resources for Parents