Stimulus Update: Washington Launches $1,200 Tax Credit for Working Families — Are You Eligible?
A new recurring tax credit is available, one which could give up to $1,200 to eligible low-to-moderate-income Washington families.
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On Feb. 1, the Washington State Department of Revenue (DOR) launched the Working Families Tax Credit (WFTC), which is a credit that gives individuals and families $50 to $1,200 depending on several factors, like qualifying children, family size and income, reported ValueWalk.
The refund gives Washington residents a portion of sales tax paid each year and is modeled after the federal Earned Income Tax Credit program, the DOR details. The purpose of the program is to stimulate the local economy, promote racial equity and help provide financial stability to low-to-moderate-income Washington residents.
“We are excited to begin accepting applications for this incredible program and getting money back to those people who need it the most,” said revenue acting director John Ryser in a Feb. 1 agency news release. “WFTC is part of a broader campaign to reduce poverty in Washington and our agency is proud to be a part of this effort.”
Individuals and families are eligible for the WFTC if they meet the following guidelines:
Have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN).
Lived in Washington for at least 183 days.
Between the ages of 25 and 64 OR have a qualifying child in 2022.
Filed a 2022 federal tax return.
Eligible to claim the federal Earned Income Tax Credit on their 2022 tax return or would meet the requirements for EITC with an ITIN.
Meet income requirements.
The Washington DOR says the maximum tax credit amount for an individual is $300, with a $300 increase for each qualifying child — up to a maximum of $1,200 for a family of three or more children.
For an individual with no children, the income eligibility limit is $16,480 (or $22,610 for a married couple filing jointly). To receive the maximum amount, the income limit for a single person with three or more children is $53,057, or $59,187 for a married couple filing jointly.
Income eligibility thresholds are based on the 2022 EITC, but this could change in future tax years.
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Applications are available online or in hard copy. According to the Washington DOR, you can apply for the tax credit through Dec. 31, 2023. You can also visit here to answer a few questions and see if you qualify.
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This article originally appeared on GOBankingRates.com: Stimulus Update: Washington Launches $1,200 Tax Credit for Working Families — Are You Eligible?