Working families tax credit

This bill modifies the existing Working Families Tax Credit under RCW 82.08.0206 by:

Expanding credit eligibility to individuals who would otherwise qualify for the federal Earned Income Tax Credit but filed their federal tax return using an Individual Taxpayer Identification Number instead of a social security number.

Changing how the amount of the credit is calculated and incorporating a reduced payment structure based on federal phase-out income levels.

Removing the requirement that the credit be funded in the state budget before individuals can claim the credit.

Setting credit amounts based on the number of qualifying children, beginning in 2023.

Establishing percentage payout rate reductions based on the number of qualifying children, as income increases.

Requiring annual adjustments to the credit amounts to account for inflation based on the Consumer Price Index beginning in 2024.

Effective July 25, 2021 ( ESHB 1297 , Chapter 195, Laws of 2021).

Learn more about Washington's Working Families Tax Credit