If you're on welfare and receiving assistance, food stamps or housing, and you win the lottery or receive an inheritance, you have to pay back. They take the child support money if you're on assistance. Why can't they take their federal and state refunds and put them towards the assistance they receive? It's a disgrace they get assistance and on top of it they get to keep their refund. Does welfare ever receive money from someone on assistance for selling junk, drugs, working under the table, etc.? If they don't report it to the IRS, do you think welfare would see any of that money?