What is the Working Families Tax Credit?
The Working Families Tax Credit program was recently funded by the Washington State Legislature through the passage of Engrossed Substitute House Bill 1297. Starting in 2023, the credit will provide approximately 400,000 Washingtonians with a one-time payment if the applicant applies for the credit and meets the eligibility requirements for the year that the applicant is applying for. Eligibility for the credit mirrors the federal Earned Income Tax Credit (EITC) but differs in a few unique ways.
Who is eligible?
To qualify for this credit, you must meet all of the following for the year the credit is claimed:
- You (and your spouse, if filing a joint return) have filed a federal tax return.
- Meet the requirements for the federal Earned Income Tax Credit (EITC), OR would meet the requirements for EITC, but are filing with an Individual Taxpayer Identification Number (ITIN).
- Be at least 25 and under 65 years of age OR have a qualifying child.
- Lived in Washington for more than 180 days.
How much will eligible recipients receive?
Maximum credit amounts range from $300 to $1,200 depending on the number of dependents an applicant claims during an eligible application period.
What is the purpose of the Working Families Tax Credit Program?
While this program is intended to provide financial relief to low-to-moderate income individuals, the Washington Legislature has also asked that the program:
- Stimulate local economic activity;
- Advance racial equity; and
- Promote financial stability and well-being.
WFTC Listening Sessions (November 2021)
We are hosting 4 online listening sessions in early November to hear from our community stakeholders about key process areas for the Working Families Tax Credit (WFTC) program. During each session, you’ll have the opportunity to provide feedback on eligibility, identity verification, the application process, and customer service. Your input will help us during the rulemaking process for the administration of the program. Get a preview of the list of questions and topics.
Thursday, November 4
6:00 – 7:30 PM
Tuesday, November 9
1:00 – 2:30 PM
Tuesday, November 9
6:00 – 7:30 PM
Saturday, November 13
Can’t attend a listening session? Take our survey!
(These events will not be recorded.)
Eligibility and identity verification questions
· The WFTC requires that an applicant prove their eligibility. If asked to provide proof of identification or residency, what could you provide to us?
· The WFTC requires that an applicant prove their eligibility. If asked to provide proof of income, what could you provide to us?
· What issues have you faced when attempting to claim a dependent for tax purposes?
Application process questions
· To qualify for the WFTC you must file a federal return. Since all federal returns are due in April of each year, the Department of Revenue plans to allow applicants up until December 1st to submit an application. Is this enough time to submit an application (February to December)?
· Applicants are required to notify the Department of Revenue if they need to amend their application for any reason. If you made a mistake on your application, how long would you need to notify us and correct the error?
Customer service questions
· What is the single most important thing that we can do to help Washingtonians apply for this credit?
-Washington State Department of Revenue