Washington state Gov. Jay Inslee is encouraging residents to apply for the Working Families Tax Credit. Eligible recipients of Washington state can receive a tax credit of up to $1,200. However, they need to apply for the Working Families Tax Credit in Washington state separately.
What Is The Working Families Tax Credit In Washington State?
Gov. Inslee’s office estimates that one in seven Washington families could be eligible for this credit, but so far, only a small number have applied for it. About 400,000 families are estimated to qualify for this credit, but so far, about 150,000 have applied for it.
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“Over a hundred thousand people are eligible but they need to apply for this,” Inslee said, according to KIRO 7.
The average credit amount disbursed so far is $738.
Washington state primarily came up with this new tax credit in response to the expiration of federal pandemic-boosted tax credits last year. This tax credit will help families pay for necessities amid rising costs and inflation.
Specifically, the new Working Families Tax Credit in Washington state returns a portion of the sales tax paid each year to eligible families. This new credit is modeled after the federal Earned Income Tax Credit (EITC) program, which is considered to be one of the most effective programs in reducing poverty nationwide.
Although this Working Families Tax Credit in Washington state aims to help low-to-moderate-income individuals and families, not all support it. Those against this credit argue that it isn’t the best way to help working families. Instead, opponents say reducing taxes across the board would have been a better option.
Who Is Eligible?
To be eligible for the Working Families Tax Credit in Washington state, individuals and families need to meet all of the following requirements:
- Have a valid Social Security Number (SSN) or Individual Taxpayer Identification number (ITIN).
- Have lived in the state for a minimum of 183 days.
- Be 25 to 64 years old or have a qualifying child in 2022.
- Have filed a federal tax return for 2022.
- Be eligible to claim the federal Earned Income Tax Credit on their 2022 tax return.
In addition to the above requirements, applicants also need to meet the income requirements. The credit amount depends on their income and family size. For instance:
- Single filers with income less than $16,480 ($22,610 for married filing jointly) and zero qualifying children will get a maximum credit of $300.
- Single filers with income less than $43,492 ($49,622 for married filing jointly) and one qualifying child will get a maximum credit of $600.
- Single filers with income less than $49,399 ($55,529 for married filing jointly) and two qualifying children will get a maximum credit of $900.
- Single filers with income less than $53,057 ($59,187 for married filing jointly) and three or more qualifying children will get a maximum credit of $1,200.
The above income eligibility thresholds are based on the 2022 federal Earned Income Tax Credit. These thresholds could change for future tax years.
Residents can apply for the Working Families Tax Credit in Washington state either online or via the paper application. For more information on how to apply, visit this link.
