What Is the Washington Working Families Tax Credit?

The Washington Working Families Tax Credit is a state-level, refundable tax credit for low-to-moderate income individuals and families residing in Washington. This program provides a direct payment to eligible households, functioning separately from federal tax obligations. It is modeled after the federal Earned Income Tax Credit (EITC). The credit amount varies based on income and the number of qualifying children in a household.

Eligibility Requirements

To be eligible for the Working Families Tax Credit, you must file a federal income tax return and meet the criteria for the federal Earned Income Tax Credit (EITC). This requirement applies even if you file with an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number.

You must have lived in Washington for more than 183 days during the tax year for which you are applying. The applicant must also have earned income during the tax year.

Income thresholds are a significant factor and are aligned with the federal EITC limits, which adjust annually. For the 2024 tax year, the Adjusted Gross Income (AGI) must be below specific amounts depending on the number of children claimed.

Age requirements also apply, stipulating that an individual without a qualifying child must be between the ages of 25 and 64. If an applicant has a qualifying child, there is no age restriction. A qualifying child is defined using the same criteria as the federal EITC, which considers the child’s relationship to the applicant, age, residency, and joint return status. The Washington credit is accessible to those who use an ITIN to file taxes.

Calculating Your Credit Amount

The amount of the Washington Working Families Tax Credit is determined by an applicant’s income level and the number of qualifying children they have. The credit is structured to provide greater amounts to families with more children and lower incomes. The payment can range from a minimum of $50 to a maximum of $1,290.

For individuals with no qualifying children, the maximum credit is $300. A household with one qualifying child can receive up to $600. For those with two qualifying children, the maximum credit increases to $900, and for families with three or more qualifying children, the maximum amount is $1,290. The credit amount phases out as income surpasses certain levels, similar to the structure of the federal EITC.

Information and Documents Needed to Apply

To apply, you will need to gather several documents. You will need a completed copy of your federal income tax return (Form 1040 or 1040-SR) for the year you are claiming the credit. This form contains the AGI and other figures used to verify eligibility and calculate the credit amount.

You will also need the Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for yourself, your spouse, and any qualifying children. The legal names and dates of birth for everyone listed on the application are also required and must match your federal tax return.

For payment, provide a current mailing address. If you wish to receive your payment via direct deposit, which is the fastest method, you must have your bank account number and routing number available.

The Application Process

Applications for the 2024 tax year open on February 1, 2025. You can apply for the credit retroactively for up to three years if you were eligible.

There are several ways to submit your application. Many individuals apply at the same time they file their federal income taxes, either through tax preparation software that integrates the state application or with a professional tax preparer. You can also apply for free through a Volunteer Income Tax Assistance (VITA) site.

Alternatively, you can apply directly with the Washington State Department of Revenue after filing your federal return. This can be done online through the department’s secure portal. Paper applications are also available to download from the department’s website and must be mailed to the correct address.