Working families tax credit
Crédito fiscal para familias trabajadoras
The 2021 Washington State Legislature passed ESHB 1297 which expands eligibility and funding for the Working Families Tax Credit program. This program is intended to support Washington’s low-income working families/individuals and is based on eligibility for the federal Earned Income Tax Credit.
It provides a credit for a portion of sales taxes paid by eligible taxpayers. People will be able to claim the credit in the form of a payment starting in 2023.
Who is eligible?
To qualify for this credit, all of the following must apply for the year the credit is claimed:
- Filed a federal income tax return (individual or joint) as a Washington resident.
- Resided in Washington State for more than 180 days of the year.
- Either filed a federal income tax return with a valid Social Security Number and met the qualifications for the federal Earned Income Tax Credit, or filed the federal income tax return with an Individual Taxpayer Identification Number and would have otherwise qualified for the federal Earned Income Tax Credit.
What is the credit amount?
The credit amount varies depending on the number of qualifying children and income level.
The maximum credit amount ranges from $300 to $1,200 depending on the number of qualifying children (see table below). These amounts are then reduced based on income thresholds, similar to the federal program. The minimum credit amount is $50, regardless of the number of qualifying children.
|
Number of qualifying children |
Maximum credit amount |
|---|---|
|
0 |
$300 |
|
1 |
$600 |
|
2 |
$900 |
|
3 or more |
$1200 |
How to apply?
Beginning in 2023, eligible people will apply to the Department of Revenue.
Opportunities for engagement
Listening Sessions
We welcome the opportunity to meet with you or your organization for a listening session. Please contact us at DORWFTC@dor.wa.gov to get something scheduled.
Speaker requests
To invite a speaker, please visit our request a speaker page.
Rulemaking
The rulemaking process will kick-off with a public meeting in early November. In preparation for that meeting, we welcome the opportunity to join you and your organization at a future meeting to collect questions and/or recommendations for the new program. Learn more about DOR’s rulemaking process or visit our rulemaking FAQs.
Community Outreach Advisory Committee
To ensure the program is equitable and customer needs are met, we are planning to create a Community Outreach Advisory Committee to help inform and guide the implementation of a robust outreach strategy. More information will be posted when it becomes available.