Washington launched a new tax credit for working families earlier this year. Applications for the Washington Working Families Tax Credit opened in February. If you believe you are eligible for the program but haven’t yet applied for it, you can still apply for the credit.
Washington Working Families Tax Credit: how to apply
In February, the Washington Department of Revenue introduced the Working Families Tax Credit (WFTC) to assist low-to-moderate-income individuals and families. About 400,000 households are estimated to qualify for the Washington Working Families Tax Credit.
Eligible individuals and families will get a tax credit of $50 to $1,200. The credit amount depends on several factors, including income and number of dependents.
Washington’s Working Families Tax Credit is modeled after the federal Earned Income Tax Credit (EITC) program. The WFTC refunds residents a part of the sales tax paid each year. The primary objective of the program is to provide financial stability to low-to-moderate-income families, as well as stimulate the local economy.
You can apply for the Washington Working Families Tax Credit online, using tax preparation software or by a paper application. The last date to apply for the credit is Dec. 31, 2023.
To apply for the credit, you will need a copy of your federal tax return, Social Security Number or ITIN, Washington state driver’s license or ID number, residential and mailing address, bank routing number and account number (if you want direct deposit) and date of birth for you, your spouse, and children.
Who can apply and how much credit to expect
Individuals and families need to meet the following requirements to qualify for the Washington Working Families Tax Credit:
- Have a valid ITIN (Individual Taxpayer Identification Number) or a Social Security Number.
- Must have lived in Washington for a minimum of 183 days.
- Are at least 25 years old and below 64 or have a qualifying child in 2022.
- Must have filed a federal tax return in 2022.
- Applicants must be eligible to claim the federal EITC on their 2022 tax return or meet the requirements to file for the EITC with an ITIN.
Along with the above requirements, the applicants must also meet the income requirements. The income threshold depends on the 2022 EITC, but it may change in future tax years.
The income eligibility for an individual with no children is $16,480 ($22,610 for a married couple filing jointly). On the other hand, the income limit to get full credit with three or more children is $53,057 ($59,187 for a married couple filing jointly).
The maximum credit one could get if they have qualifying children ranges from $300 to $1,200. The credit amount is then reduced based on income thresholds. The minimum credit one could get, irrespective of the number of qualifying children, is $50.
Visit the Washington Department of Revenue website for more details on the Working Families Tax Credit.
