State of Wisconsin Department of Health Services

Release 24-03 December 18, 2024

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4.5.6 Repayments

Repayments are moneys that are paid back either voluntarily or involuntarily from some other program's benefits. Intentional failure to comply with program requirements is determined by the authorities for that program. Contact those authorities to determine the reason for repayments. The amount of a repayment that should be used to determine eligibility and benefits varies depending on the source and reason for the repayment. See the sections below for specific repayment policy based on the source and reason of the repayment.

For all repayments, disregardmeans do not count, exempt, or exclude no more than the current payment from that source. Disregard income that is mixed with other types of income and used to repay an overpayment back to the source of the income.

Example 1

Ted receives $50 each month in VAVeterans Affairs benefits and $250 in Social Security benefits. The VA overpaid him by $200. If he pays back $50 each month to the VA, do not budget the $50 as income. If he pays back $75 each month, disregard only $50. Budget the remaining $25 because it isn't money from the source of the overpayment. Remember that his VA benefits are only $50 a month. The $25 is probably from his Social Security benefits.

4.5.6.1 Repayments due to a W-2 IPV

When a repayment is due to an intentional failure to comply with W-2Wisconsin Works program requirements, count any portion of that program's benefit that is withheld as a repayment.

4.5.6.2 Repayments for means-tested sources that are withheld

Disregard repayments (not due to a FoodShare IPVIntentional Program Violation) from benefits payable to the food unit that are withheld from a means-tested assistance payment or other source of income due to an overpayment.

An assistance payment is any benefit provided by a means-tested program funded by federal, state, or local funds. Means-tested programs are those which base eligibility on income and assets. These include, but are not limited to, W-2 and the Refugee Assistance Program.

Example 2

Kim received an overpayment of $100 from W-2 (not due to IPV). She has $10 a month withheld from her $673 W-2 check to repay the overpayment. Disregard the $10 monthly until the $100 is repaid. Her net check is now $663. Budget the net amount of $663 for FoodShare.

4.5.6.3 Repayments for means-tested sources that are paid out of pocket

Disregard repayments (not due to a FoodShare IPV) from out of pocket or from non-means-tested benefits (for example, SSDI) to repay an overpayment for a means-tested program (for example, SSI). Budget the net non-means-tested program benefits.

An assistance payment is any benefit provided by a means-tested program funded by federal, state, or local funds. Means-tested programs are those which base eligibility on income and assets. These include, but are not limited to, W-2, SSI,Supplemental Security Income and the Refugee Assistance Program.  

Example 3

Kim received an overpayment of $100 from W-2 (not due to IPV). She has agreed to make a one-time payment of $100 in June to pay this back. Her June W-2 benefit was $673.  Budget the net amount of $573 ($673 - $100) for FoodShare for June.

4.5.6.4 Repayments for non-means-tested sources that are withheld

Disregard repayments (not due to a FoodShare IPV) from benefits payable to the food unit that are withheld from a non-means-tested assistance payment or other source of income due to an overpayment.

Non-means-tested programs are those which do not base eligibility on income and assets. Social Security and Unemployment Compensation (UCUnemployment Compensation) are examples of a non-means-tested source.

Example 4

Pao receives FoodShare and Unemployment Compensation (UC). UC is not a means-tested program. Pao had an overpayment in his UC and $25 is being recouped from his current checks. His gross is $500, and his net is $475. Budget the net $475 as income for FoodShare.

4.5.6.5 Repayments for non-means-tested sources that are paid out of pocket

Disregard out of pocket payments (not due to a FoodShare IPV) to a prior non-means tested overpayment received from that source.

Non-means tested programs are those which do not base eligibility on income and assets. Social Security and Unemployment Compensation (UC) are examples of a non-means tested source.

Example 5

Val incurred a $20 overpayment from Social Security. Social Security income is not means tested. Val cashes her $726 SS check and uses the money to repay the $20 overpayment. Disregard the $20 and budget $706 for FoodShare. If she used the $20 to repay other types of overpayments, such as VA or W-2, count it as income because the repayment isn't from the same source.

4.5.6.6 SSI Repayments

Always budget net SSI regardless of the reason for any overpayment.  

4.5.6.7 Earned Income Repayments

Disregard earned income used to repay an overpayment received earlier from that same source. Do not disregard more than the current amount of payment from that source. Disregard earned income for this reason even if the earnings are mixed with other types of income and used to repay an overpayment.

Example 6

Jill works part-time for $50 (net) a month and receives $250 a month in social security (SSASocial Security Administration) benefits. She is overpaid by her employer’s error by $200. If she pays back $50 a month to the employer, do not count that $50. If she pays back $75 a month, only $50 (equal to her regularly received earned income from the overpayment source) is not counted. The other $25 is paid from her SSA benefit and is counted.

4.5.6.8 General Relief / Interim Assistance

The state of Wisconsin no longer administers a General Relief (GRGeneral Relief) program. However, some local agencies administer their own GR or Interim Assistance (IAInterim Assistance: Payments made to an individual who has applied for SSI. These payments are considered a loan and must be repaid to the local agency upon receipt of the individual's initial lump sum SSI payment.) program.

Count GR payments, including work relief, as income unless the payments can be excluded. For example, disregard GR vendor payments made to homelessAn individual who lacks a fixed and regular nighttime residence or an individual whose primary nighttime residence is: 1) A supervised shelter designed to provide temporary accommodations (such as a welfare hotel or congregate shelter), 2) A halfway house or similar institution that provides temporary residence for individuals intended to be institutionalized, 3) A temporary accommodation for not more than 90 days in the residence of another individual, or 4) A place not designed for, or ordinarily used as a regular sleeping accommodation for human beings (for example, a hallway, bus station, a lobby, or similar places). people in transitional or temporary housing.

Do not count IA as income. Since there are always repayment agreements for IA, it is considered a loan to be repaid and should not be budgeted as income.

4.5.6.9 Jury Duty

Since the method of payment for jury duty varies by jurisdiction, determine the specific manner in which an individual is being compensated before deciding how to count it. Count any portion of the payment which is over expenses as earned income, to be budgeted in the month received, assuming payment made within the jurisdiction’s usual payment is paid beyond this period.

If all or a portion of the jury duty payment is attributable to expenses incurred while serving (such as transportation costs), disregard this portion as a reimbursement.

4.5.6.10 Vendor Payments

A vendor payment is diverted by the provider of the payment to a third party for an expense of the food unit. Vendor payments may be counted or disregarded as income. Ask, “Is the vendor payment something legally obligated to the food unit?” If yes, count the vendor payment or benefit as income.

Examples of vendor payments counted as income are:

1. Garnished wages paid to a third party for a food unit’s debts or expenses such as rent.
2. W-2 and GR payments that are not paid directly to the member. These include vendored or vouchered payments and those paid to a protective payee. Count them as unearned income.
3. Vendored W-2 and GR payments made to a third party for homeless food unit living in transitional or temporary housing
4. Money deducted or diverted from a binding written support or alimony payment to a third party for a food unit's expense. This includes court-ordered support or alimony payments.
5. Educational loans on which payment is deferred, grants, scholarships, fellowships, Veteran’s educational benefits and the like, provided to a third party on behalf of the food unit for living expenses such as rent or mortgage, clothing or food eaten at home.
6. Unemployment compensation benefits intercepted by Child Support agencies.

Some examples of disregarded vendor payments are:

1. Payments on behalf of the food unit made by a relative who is not a member of the food unit as a gift or other contribution.
2. Rental payments made by HUDU.S. Department of Housing and Urban Development to a landlord.
3. Payments made by a government agency directly to a childA person's biological, step, or adopted son or daughter, regardless of age. If a child is adopted, the adoption severs the biological tie to the parent. care institution to provide for a food unit member
4. Payment of a food unit’s medical bills made directly to the medical provider by any third party, such as an insurance company or GR.
5. Payments specified by a court order or other legally binding agreement to go directly to a third party instead of the food unit are excluded because they are not otherwise payable to the food unit.
6. Support payments not required by a court order or other legally binding agreement paid to a third party rather than the food unit. This included payment over the amount specified in a court order or written agreement.
7. Educational aid that is paid to a third party rather than the food unit for purposes other than living expense. A vendor payment to a school for tuition is an example.
8. Emergency assistance from state or local funds which is over and above the assistance grant(s).
9. Payments made by the State of Wisconsin for Medicare Part A and B coverage under the QMB, SLMB, SLMB+, or QDWI programs.

Example 7

In Fred and Tina’s divorce judgment the court orders Fred to pay $400 a month in child support. In addition, the court orders Fred to pay $200 a month to a health insurance company for the children’s health care coverage. The $400 is counted as income to Tina’s food unit and the $200 is excluded from income, because it is not otherwise owed to the food unit.

 

Example 8

Xao loses all his belongs in a fire. An emergency payment voucher is given to a clothing store. Disregard the payment as it is an extra payment used for an emergency.

This page last updated in Release Number: 16-02
Release Date: 12/19/2016
Effective Date: 12/19/2016

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Publication Number: P-16001