Washington Working Families Tax Credit

Quick Facts

• Benefit type: Refundable state tax credit that supplements the federal Earned Income Tax Credit (EITC).
• Who can claim: Washington residents, including Individual Taxpayer Identification Number (ITIN) filers, who meet federal EITC criteria and lived in the state for at least 183 days.
• How much: $300 to $1,255 depending on filing status and number of qualifying children. The maximum for 2024 claims is $1,255 for families with three or more qualifying children.
• How to claim: File the state Working Families Tax Credit application online or by mail after submitting your federal tax return.
• When paid: The Department of Revenue issues refunds via direct deposit or prepaid card within 90 days of receiving a complete application.

Program Overview

Washington launched the Working Families Tax Credit (WFTC) in 2023 to deliver cash back to low- and moderate-income workers. Unlike most states, Washington lacks an income tax, so the credit is a direct payment processed by the Department of Revenue. It mirrors the federal EITC structure but adds a base amount for childless workers and extends eligibility to ITIN filers, including undocumented immigrants who file taxes using an ITIN.

The credit aims to reduce poverty, encourage work, and recognize the rising cost of living. Nearly 400,000 Washington households qualify. Because the state credits are refundable, you receive the payment even if you owe no taxes. Funds can be used for rent, groceries, transportation, or savings, giving families flexibility.

Eligibility Requirements

To qualify you must:

1. Meet federal EITC criteria: You must either have claimed the federal EITC on your tax return or meet all federal EITC requirements even if you were not required to file. This includes earned income limits, investment income limits, and relationship/residency tests for qualifying children.
2. Residency: You must have lived in Washington for at least 183 days (more than half the year) during the tax year. Temporary absences (e.g., for school or military service) count as residency if Washington remains your domicile.
3. Valid taxpayer identification: Provide a Social Security number or ITIN for yourself, your spouse (if filing jointly), and any qualifying children listed on the claim. Washington explicitly allows ITIN filers.
4. Age requirements for childless workers: If you do not claim qualifying children, you must be between 25 and 65 or meet the expanded age eligibility under federal rules (students and foster youth age 18+ may qualify under recent changes).
5. File within deadlines: Submit the application by April 15 following the tax year, or within three years if filing late. You must also have filed a federal tax return for that year.

Special Considerations

• Married filing separately: Individuals using married filing separately are not eligible, mirroring federal EITC rules.
• Nonresident aliens: Foreign students or scholars present under certain visas may be ineligible if they do not meet residency requirements; consult IRS Publication 519.
• Military members: Service members stationed out of state but domiciled in Washington can claim the credit if they meet the residency requirement.

Benefit Calculation

• Base amount: $300 minimum credit for eligible filers with no children; $600 for one child; $900 for two children; $1,200 for three or more children.
• Income phase-in/out: The credit increases with earned income until it reaches the maximum, then phases out as income exceeds thresholds similar to the federal EITC. The state provides a calculator to estimate the amount.
• Proration: If you qualify for the federal EITC but have partial-year residency, the credit may be prorated based on time spent in Washington.
• Offsets: The Department can apply refunds to outstanding Washington state tax debts or child support obligations. Federal debts are not offset because this is a state program.

Application Process

1. File your federal tax return: Claim the federal EITC if eligible. Keep a copy of your return, including the EIC worksheet and Schedule EIC if applicable.
2. Gather documents: Collect Social Security or ITIN numbers, proof of Washington residency (lease, utility bills, school records), and banking information for direct deposit. If claiming qualifying children, have birth certificates or school records handy in case of verification.
3. Create a Secure Access Washington (SAW) account: Visit the Department of Revenue’s online portal to create or log into SAW. This account is required for online applications and status tracking.
4. Complete the WFTC application: Enter personal information, federal adjusted gross income, filing status, number of qualifying children, and residency details. Upload supporting documentation if requested.
5. Submit by April 15: Applications open in January. Submit early to avoid delays. If filing by mail, print and send the form with copies of required documents to the address listed in the instructions.
6. Track status: Use the SAW portal to monitor progress. Processing typically takes 30–90 days. The Department may request additional documentation; respond promptly.
7. Receive payment: Choose direct deposit for fastest payment. Alternatively, request a prepaid debit card or paper check.

Required Documentation Checklist

• Copy of federal tax return with EITC claimed (Form 1040 and Schedule EIC).
• Social Security cards or ITIN assignment letters for all individuals on the application.
• Proof of Washington residency (lease, mortgage statement, utility bills, school records, voter registration).
• Bank routing and account numbers for direct deposit or consent for prepaid card.
• For ITIN filers, copies of ITIN renewal confirmation if renewed within the last three years.
• For qualifying children, documents showing relationship and residency (birth certificates, school enrollment records).

Deadlines and Timing

• Initial deadline: April 15 following the tax year (e.g., April 15, 2025 for 2024 income). If April 15 falls on a weekend/holiday, the deadline moves to the next business day.
• Extended filing: You may submit within three years of the original deadline. For example, 2024 claims can be filed through April 15, 2028.
• Processing time: 30–90 days. Applications submitted during peak season may experience longer processing.
• Appeals: If denied, you can request administrative review within 30 days. Provide additional documentation or clarification.

Interaction with Other Programs

• SNAP, TANF, Medicaid: The credit is considered a tax refund and typically does not count as income for federal benefits. However, if funds remain after 12 months, they may count as an asset.
• Affordable Care Act subsidies: Refunds do not affect premium tax credits because they are not taxable income.
• Local assistance: Community-based organizations such as United Way, tax preparation clinics, and immigrant rights groups assist with applications, especially for ITIN filers.
• Tax preparation: Many free tax prep sites (VITA/TCE) in Washington incorporate WFTC applications into their services. Ask your preparer to submit the state application alongside federal forms.

Maximizing Your Credit

1. File taxes early: Early filing reduces wait times and ensures you meet deadlines even if you need to correct mistakes.
2. Renew ITINs promptly: Expired ITINs can delay applications. Renew in the fall before filing season.
3. Direct deposit: Speeds payment and avoids lost checks. Set up a dedicated savings account if you want to earmark the refund for specific goals.
4. Keep records: Maintain copies of tax returns, proof of residency, and correspondence with the Department. This helps with future applications and audits.
5. Coordinate with financial counseling: Use the refund to build emergency savings or pay down high-interest debt. Many credit unions offer “refund to savings” programs.

Common Mistakes to Avoid

• Incorrect residency documentation: Ensure documents show your name and Washington address covering at least 183 days. Avoid using short-term hotel receipts unless you resided there long term.
• Missing ITIN verification: If you recently renewed an ITIN, include the renewal notice. Without it, the Department may hold the claim.
• Not filing a federal return: Even if not required by income level, you must file a federal return to document EITC eligibility.
• Transposed bank numbers: Double-check bank routing and account numbers to prevent delays.
• Ignoring follow-up requests: Respond quickly to Department inquiries; failure to respond within 30 days may result in denial.

Example Scenarios

• Married couple with two children: The Rivera family earns $38,000 and claims the federal EITC. They receive $900 from Washington, which they use to cover childcare costs.
• ITIN filer working in agriculture: Lucia files taxes with an ITIN and two qualifying children, earning $28,000. She receives the maximum $1,200 credit, which helps buy school supplies and pay down medical bills.
• Young worker without children: Alex, age 26, earns $18,000. Though childless workers receive smaller credits, Alex still gets $300, providing a boost for car repairs.

Frequently Asked Questions

• Do I need to owe Washington taxes? No. The credit is a refund, so you receive it even if you owe nothing.
• Can I receive the credit if I did not claim the federal EITC? You must meet federal eligibility criteria. If you missed it, file an amended federal return to claim the EITC, then submit the state application.
• How does the credit affect undocumented filers? ITIN filers, including undocumented workers, are eligible if they meet residency and income criteria. The Department does not share immigration status for enforcement.
• What if I moved partway through the year? Provide proof showing you lived in Washington at least 183 days. If you moved in October, you may need to wait to claim for the following tax year.
• Can I split the refund between accounts? Not currently. Choose one account or opt for a prepaid card.

Additional Resources

• Washington Department of Revenue Working Families Tax Credit
• Online application portal
• Eligibility checklist (PDF)
• United Way of King County tax help
• IRS Earned Income Tax Credit information