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Wisconsin Department of Children and Families Wisconsin Works (W-2) Manual |
A W-2 participant who has an AFDC overpayment may elect to repay the overpayment in one of four ways:
1. Monthly installments;
2. W-2 payment reduction of 10 percent or $10 dollars, whichever is greater;
3. W-2 payment reduction greater than 10 percent. The elected percentage must be indicated on the AFDC Repayment Agreement; or
4. Payment in full.
Persons with AFDC overpayments must select and initial at least one of the above repayment options on the CARES generated AFDC Repayment Agreement. Failure to complete the repayment agreement may result in additional collection, tax offset, or both. A person selecting the recoupment option from W-2 cash payments (items 2 and 3 above) will have tax offset suspended, along with any other collection action, as long as he or she is receiving a W-2 payment. However, recoupment from W-2 cash payments can occur only if a participant agrees to have his or her W-2 payment reduced. Those selecting monthly installments or payment in full (items 1 and 4 above) must comply with the terms of the agreement. Failure to comply with the agreement will result in additional collection action.
The AFDC Repayment Agreements are generated from CARES screen BVSL.
History: Release 21-04.