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.
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.
This credit program is managed by the Washington State Department of Revenue (DOR), the state’s tax administration agency.
Department of Revenue has partnered with community-based and community-led organizations across the state to ensure that information about the Working Families Tax Credit reaches all Washington residents, especially those who may benefit from direct services in their local communities.
The legislature made a total of $10,000,000 available for these community outreach grants.
In summer 2022, we partnered with Department of Commerce and began accepting applications for the Working Families Tax Credit Community Outreach Program grants. 37 organizations were selected to receive funds and began their outreach efforts in October 2022. Recipients are non-profit organizations, small for-profit businesses, and organizations that serve minority groups and tribal governments located in Washington state.
Department of Revenue hosted listening sessions in November 2021 and May 2022. The input received at these sessions helps ensure we create an equitable program that meets the needs of our customers and supports Washington’s low-to-moderate income working families and individuals.
View the Listening Session Reports:
Learn more about the Washington State Department of Revenue.
The Department of Revenue oversees the Working Families Tax Credit program and develops the rules to administer it.