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State of Wisconsin |
Release 24-02 |
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, disregard 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 VA 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. |
When a repayment is due to an intentional failure to comply with W-2 program requirements, count any portion of that program's benefit that is withheld as a repayment.
Disregard repayments (not due to a FoodShare IPV) 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. |
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, 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. |
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 (UC) 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. |
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. |
Always budget net SSI regardless of the reason for any overpayment.
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 (SSA) 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. |
The state of Wisconsin no longer administers a General Relief (GR) program. However, some local agencies administer their own GR or Interim Assistance (IA) program.
Count GR payments, including work relief, as income unless the payments can be excluded. For example, disregard GR vendor payments made to homeless 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.
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.
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:
Some examples of disregarded vendor payments are:
| 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
Notice: The content within this manual is the sole responsibility of the State of Wisconsin's Department of Health Services (DHS). This site will link to sites outside of DHS where appropriate. DHS is in no way responsible for the content of sites outside of DHS.
Publication Number: P-16001