Economy
Washington Gov. Inslee Urges Residents to Apply for Working Families Tax Credit
Published:
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.
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.
“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.
To be eligible for the Working Families Tax Credit in Washington state, individuals and families need to meet all of the following requirements:
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:
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.
This article originally appeared on ValueWalk
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