Nearly 400,000 households are eligible for Washington’s new Working Families Tax Credit, which will give as much as $1,200 a year to low-income working families.
But it won’t come automatically. You have to sign up for it.
And while that’s not a difficult process, it’s an extra step that will keep hundreds of thousands of people from receiving money they should get, the state predicts.
You may be able to sign up through the same online tax preparer that you use to file federal income taxes, depending on which service you use.
The state Department of Revenue has partnered with about a dozen third-party tax preparers — including Jackson Hewitt, TaxSlayer and H&R Block — that will let you apply for the new Washington tax credit as you file your income taxes. But other popular programs, such as TurboTax, will not offer the option.
Instead, to receive the tax credit, which will be disbursed in the form of a rebate on sales taxes already paid, Washington residents can apply directly to the state at workingfamiliescredit.wa.gov/apply. You can also apply to the state’s Department of Revenue by mail or with the help of community partners located around the state.
Because of the scattered application process, the state estimates that only about 40% of households eligible for the tax credit will sign up for and receive it in the first year.
To qualify for the tax credit you must file federal income taxes and live in Washington for most of the year. You can apply with either a Social Security number or an Individual Taxpayer Identification Number, so undocumented immigrants can apply and receive the tax credit.
You also must meet income requirements. For instance, a couple with two children qualifies if they make less than $55,500.
The size of the tax credit you can receive — anywhere from $50 to $1,200 — varies based on the size your income and family size.
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