After more than a decade of advocacy and years of legislative effort, the Washington Treasury Department on Wednesday introduced the Working Family Tax Credit. The credit could offer a rebate of up to $1,200 for those who qualify. The tax credit is expected to benefit more than 400,000 low-income households in the state.
People are eligible based on their income level and the number of eligible children in the household. An individual can get up to $300 through the tax credit, and the amount increases by $300 for each child, up to $1,200 for families with three or more children. The minimum amount based on the income of eligible children is $50.
According to the Washington State Budget and Policy Center, the tax credit is the culmination of more than a decade of work by community advocates. Washington Governor Jay Inslee published an article on Medium about the tax credit. Inslee wrote that a 2021 study found that low-income Washington residents pay 17 percent of their income in taxes, while middle-class workers pay 11 percent. The wealthiest income brackets pay an average of 3 percent in taxes. "Programs like the WFTC correct this backward tax structure by making Washington's tax system less regressive," Inslee wrote.
The refund program includes an important component that allows taxpayers with an Individual Tax Identification Number (ITIN) to also be eligible for the refund. People who file taxes with an ITIN include undocumented immigrants and some visa holders. The Internal Revenue Service (IRS) issues ITINs to process tax returns and payments for those who are not eligible for Social Security numbers.
Comments / 133