Article Image Alt Text

Tax Intercept Enforcement in full effect

It’s tax season—and that means the tax intercept enforcement tool for child support agencies is in full effect. The child support program uses intercepted tax refunds to collect past due child support, maintenance, medical support, interest, fees, and other debts such as birth expenses paid by the Medicaid and BadgerCare Plus programs.

How Tax Intercept Works:

•Child Support mails a one-time notice to parents who owe past-due support the first year that child support reports the debt to the IRS or Wisconsin Department of Revenue. The notice also includes information about appealing the intercept. If the debt is paid off, but the parent builds up a debt again, another notice would be sent.

•The amount of past due support is regularly updated, and the amount intercepted may go up or down depending on how much support is paid or not. No matter how much past due support a parent owes, the most that can be intercepted is the amount of the tax refund itself. 

•Intercepted Federal income tax returns first pay past due support and debts assigned to the state before paying of any support owed to the family. The Department of Revenue (State Tax Refund) does not have that provision and will pay off debts owed to the family first —current support, then any past due debts owed. 

  To view more, please log in or subscribe to the digital edition.