Washington State came up with a new tax credit, the Working Family Tax Credit, a few months back. Although this credit is still available, many don\u2019t seem to be aware of this Washington State new tax credit.<\/p>\n
In February, Washington State officially launched the Working Family Tax Credit program to help low-to-moderate-income individuals and families. The tax credit was funded through the General Fund from sales tax revenue.<\/p>\n
This new tax credit would return some of the sales tax that the state collects. The sales tax in Washington is comparatively more on all goods and services than most other states.<\/p>\n
Eligible recipients could get a credit of up to $1,200, depending on several factors, including qualifying children and income. An individual could get up to $300 in credit, and the amount increases by $300 for every child (up to three children).<\/p>\n
Although the state started accepting applications for the Working Family Tax Credit on February 1, the state Department of Revenue believes not many are aware of this program.<\/p>\n
Washington expects the program to benefit about 400,000 low-to-moderate-income families. However, so far, about a third have applied for it, Kevin Dixon, the director managing the new tax credit for the state DOR, told KIRO 7.<\/p>\n
Dixon noted that the lack of awareness about the program could be because the state government doesn\u2019t collect income tax, and a family tax credit is usually linked to income.<\/p>\n
The state has already refunded about $55 million over the last couple of months. Washington has set aside $230 million to issue the credit, so there is a lot more credit left to be claimed, Dixon noted.<\/p>\n
The last date to apply for this credit is Dec. 31, 2023.<\/p>\n
The Washington State Working Family Tax Credit is not available to all residents, rather it is targeted at low income, undocumented immigrants and mixed-status families. Following are the eligibility requirements to qualify for the credit:<\/p>\n
Apart from these, there are also income requirements to qualify for this tax credit. For more information on the eligibility requirements, visit this link. You can also use the same link to check if you qualify for the Working Family Tax Credit.<\/p>\n
Applicants can apply for the credit online (using MyDOR), efile (using tax preparation software) or mail (Download a PDF application to mail or hand-deliver).<\/p>\n
This article originally appeared on ValueWalk<\/i><\/p>\n
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