Tax year 2023 applications now being accepted for the Working Families Tax Credit

OLYMPIA, Wash. – Feb 1, 2024 – The Department of Revenue is accepting tax year 2023 applications for the Working Families Tax Credit (WFTC). This year, the credit provides payments up to $1,255 to individuals and families who meet certain eligibility requirements.

In its first year, the WFTC program approved nearly 163,000 applications, returning over $116 million to individuals and families benefitting more than 247,000 children. The program returns a portion of sales tax paid each year and is modeled after the federal Earned Income Tax Credit (EITC), which is considered one of the best tools for reducing poverty nationwide.

“We are anxious to build on the success of year one,” Revenue Director Drew Shirk said. “This year we want to return even more money back to the people who need it most. I encourage everyone to help spread the word this tax season.”

New this year – legislative changes to the program

In 2023, the Legislature expanded the program to reach more Washingtonians. Some of the changes include:

  • Allows individuals to apply for any WFTC refunds they were eligible for, but did not claim, for up to three calendar years from when their federal tax return was due. This will apply to tax year 2022 (which is filed in 2023) and the following years. For example: In 2024, you can apply for both 2023 and 2022 tax year credits.
  • Expands eligibility to individuals who filed their federal income tax return under the married filing separately status. This will apply to tax year 2023 (which is filed in 2024) and the following years.

About the credit

  • Provides payments up to $1,255 for tax year 2023 to individuals and families who meet eligibility requirements.
  • The WFTC refund is in addition to what someone may receive under the federal Earned Income Tax Credit (EITC) program.
  • The WFTC is a recurring program and can be applied for each year you meet the eligibility criteria.
  • The application period begins Feb. 1, 2024 for the 2023 tax year and will be accepted through Dec. 31, 2027.

Eligibility

Individuals and families are eligible for the Working Families Tax Credit if they meet all the following requirements:

Tax Year 2023 income thresholds and credit amount*

Eligibility for the WFTC is based on income and family size. The maximum credit amount for a single person is $315, with an increase of $315 for each qualifying child, up to a maximum of $1,255 for a family with three or more children.

Number of qualifying children Applicant must make less than the following Maximum credit amount
  Single Married
(filing jointly)
 
0 $17,640 $24,210 $315
1 $46,560 $53,120 $625
2 $52,918 $59,478 $940
3 $56,838 $63,398 $1,255

*Income eligibility thresholds are based on the 2023 Federal Earned Income Tax Credit. Eligibility thresholds may change for future tax years.

Ways to file

Applications are available online and by paper. Revenue has also partnered with multiple tax preparation software vendors so that applicants can file their WFTC application when they file their federal tax return.

Resources

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The Department of Revenue is Washington state’s primary tax agency, nationally recognized as a trusted leader in tax administration and customer service. Revenue administers nearly 60 categories of taxes that help fund vital public services. It also oversees programs that return money to the public, including the Working Families Tax Credit and Unclaimed Property.