The availability of stimulus checks and other COVID-19 benefits has ended, but a new tax credit is now available for claim. This new tax credit is open to people and families in Washington with low to moderate incomes.
The Working Families Tax Credit (WFTC), a new tax credit from Washington, could provide up to $1,200 to qualifying families. The Washington State Department of Revenue (DOR) introduced a tax credit for eligible people and families on February 1.
Who Will Receive Working Families Tax Credit?
The credit ranges from $50 to $1,200 based on numerous criteria, including the number of eligible children and household income. This tax credit restores a portion of the annual sales tax paid.
Per 247 Wall St, a single individual can receive up to $300 in credit. The maximum amount of the credit is $1,200 for families with three or more children. It is anticipated that approximately 400,000 low-income households in the state would benefit from the Working Families Tax Credit (WFTC).
On Wednesday, February 1, the Washington State Department of Revenue began accepting applications for the Working Families Tax Credit. Not all applicants will qualify for the program, according to the DOR.
The Working Families Tax Credit can be applied online, on paper, or with tax preparation software. Visit this page for additional information on how to apply for Washington's new tax credit.
Applicants can also receive free application assistance. Washington's new tax credit is available to undocumented immigrants and families with mixed immigration status.
Washington Tax Credits' Requirements
According to GoBankingRates, to qualify for the WFTC, families, and individuals must satisfy the following requirements:
- Applicants must have a valid SSN (Social Security Number) or ITIN (International Taxpayer Identification Number) (Individual Taxpayer Identification Number).
- In 2022, they must have resided in Washington for at least 183 days.
- Applicants must be at least 25 years old and under 65 years old in 2022 or have a qualified child.
- They must have submitted a tax return for the year 2022.
- Applicants must be qualified to claim the earned income tax credit (EITC) on their 2022 federal tax return.
- Individuals and families must also fulfill certain income thresholds to qualify for the new tax credit.
According to the DOR, homeless individuals may be eligible for the Working Families Tax Credit. Such persons must present evidence of "residency" in Washington.
The documentation might include a statement from a community group or shelter stating that they know the individual, that the individual resides in a specific region of the state, and that the individual has resided in that area for at least 183 days in the year for which the credit is being claimed.
The credit amount for an individual is $300, increasing by $300 for each qualified child, up to a maximum of $1,200 for families with three or more qualifying children.
The income qualifying limit for a person without children is $16,480 (or $22,610 for a married couple filing jointly). Per Seattle Times, the maximum allowable income for a single parent with three or more children is $53,057, or $59,187 for a married couple filing jointly.
The income qualifying levels are based on the EITC for 2022. However, this may vary in subsequent tax years. Applications can be submitted online or on paper. According to the Washington Department of Revenue, the tax credit application deadline is December 31, 2023.
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