The Working Families Tax Credit has similar eligibility requirements to the federal Earned Income Tax Credit (EITC) – with a few differences.
Individuals and families are eligible for the Working Families Tax Credit if they meet all of the following requirements:
The 2023 credit amount varies depending on the number of qualifying children and income level.
The maximum credit amount ranges from $315 to $1,255 depending on the number of qualifying children (see table below). These amounts are then reduced based on income thresholds, similar to the federal program. The minimum credit amount is $50, regardless of the number of qualifying children. See our Frequently Asked Questions (FAQs) about income to learn more.
|Number of qualifying children
|Applicant must make less than the following in 2023
|Maximum credit amount
Did we miss you last year? You can still apply for the 2022 tax year credit!
Individuals and families are eligible for the Working Families Tax Credit if they meet all of the following requirements for the tax year they're claiming the credit:
The rules for qualifying children are based on the federal Earned Income Tax Credit (EITC). These rules involve the child’s age, relationship, and residency. View the qualifying child rules.
Under Washington’s credit, a qualifying child can have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
No, you do not have to be currently employed to receive the credit. However, you must have earned income for the tax year you're claiming the credit.
The Working Families Tax Credit is dependent on the number of qualifying children and income level. The minimum credit is $50, regardless of the number of qualifying children. See table for estimates based on the income eligibility thresholds.
To qualify for this credit, you must be a resident of Washington, which means that you must be physically present and reside in Washington for at least 183 days during the tax year. Applicants not physically present in Washington state for at least 183 days are not eligible for the credit.
If you are in the military, and live outside of Washington state, but are married filing jointly, and have a spouse that resides in Washington, you’re still eligible and should apply.
Yes. If you are married filing jointly on your federal tax return, only the primary applicant must be a resident of Washington for at least 183 days to be eligible for the credit.
Yes. An individual who is physically present and resides in Washington for at least 183 days and does not commute back to their state of residence will generally be considered to “reside” in Washington and is a Washington resident for WFTC residency purposes.
Yes. The term “reside” does not require that an individual have a physical address in Washington, just that Washington is the place they reside. If you are experiencing homelessness, you may check the box that you are opting out of providing your primary residence.
Individuals or their families who are experiencing homelessness may demonstrate that they “reside” in Washington by providing proof of their residency via a letter from a community organization or shelter affirming: (1) the community organization or shelter knows and can identify the individual, (2) the individual has resided in a particular area in Washington (which the organization or shelter will describe), and (3) the individual has resided in this area at least 183 days during the period for which the credit is being claimed.
The income limits are based on the federal Earned Income Tax Credit (ETIC). View the current income limits.
Note: These thresholds change each year and will be updated on the IRS’s website.
Unearned income is personal income that is gained from sources unrelated to employment. The following are examples of sources that are not considered earned income:
Disability insurance payment (paid premiums).
No. A qualifying child’s income is not a factor in your AGI.
Yes, having foreign income and filing form 2555 disqualifies you from receiving the Working Families Tax Credit.
Yes, but investment income cannot exceed $11,000 for applicants filing single or jointly. Examples of investment income include:
Yes. If you receive strike benefits from your Union, you must include payments as earned income to determine your eligibility for the program.
No. Any income you receive while in any penal institution (inmate income), work release program, and/or halfway house is not earned income.
Alimony or spousal support you receive is not considered earned income.
Including combat pay can increase or decrease the credit amount received from the federal government. As such, you are allowed to include your combat pay if it increases your credit or leave it out if it decreases your credit.
If you are retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Minimum retirement age is generally the earliest age at which you can receive a pension or annuity if you were not disabled.
Also, combat pay can be earned or unearned income. Taxpayers are allowed to include their combat pay if it increases their credit or leave it out if it decreases their credit.
If you file a joint tax return, your spouse’s income is combined with your income to determine if you and your spouse meet the income requirements.
It may depend on when you divorced, and how you file your federal taxes. If you were married more than half of the year, your ex-spouse’s income could be earned income for WFTC purposes.