Starting in 2023, the Working Families Tax Credit is a new tax refund that helps Washington workers and their families get more money back at tax time. The refund returns a portion of sales tax paid each year and is modeled after the federal Earned Income Tax Credit program.

This credit program is managed by the Washington State Department of Revenue (DOR), the state’s tax administration agency. You can learn more about the credit by visiting their website by clicking here or watching the videos below.

The purpose of the Working Families Tax Credit is to stimulate the local economy, promote racial equity, and support the financial stability and well-being of low-to-moderate income Washington residents and their families.

To qualify for the WFTC Credit, you must file a federal tax return for the year you are claiming the WFTC credit. You do not have to have claimed or received the federal Earned Income Tax Credit but must meet all eligibility requirements for it. If you would have met all the requirements for the EITC, but are filing with an Individual Taxpayer Identification Number (ITIN), you can still qualify for the Working Families Tax Credit.

The Working Families Tax Credit amount is dependent on the income level and number of qualifying children an applicant can claim. The maximum number of children that an applicant can claim is three. The minimum credit for eligible applicants is $50, regardless of the number of qualifying children. The actual amount received varies depending on income and qualifying children. Not all applicants will qualify.

AARP Foundation Tax-Aide tax counselors can prepare and e-file your application for the Working Families Tax Credit when we prepare your Federal Individual Income Tax Return.