Wisconsin Department of Children and Families

Protecting Children, Strengthening Families, Building Communities

 

 

Intercepting State Tax Refunds and Lottery Winnings

Criteria

State tax refunds are intercepted if all four of the conditions below are met:

  1. The past-due amount on a court case is $150 or more.
  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.
  4. 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 tax return.

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. See section below for more information on intercept of lottery winnings.

Who Gets the State Tax Refund?

  • Intercepted state tax refunds first pays current support owed to the family 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.
  • After current support, past-due support, and debts are paid off, any remaining refund is sent to the paying parent.

Lottery Winnings

If the paying parent wins a Wisconsin state lottery prize worth $1,000 or more and is certified for state tax intercept:

More Tax Resources for Parents

  • The certified child support debt amount will automatically be taken from the prize winnings and used to pay support.
  • The intercepted lottery winnings are paid out the same way as intercepted state tax refunds, as outline above.
  • The lottery winnings will be intercepted if the parent gets a full jackpot at once, or if the winnings are paid out over time.