Frequently asked questions | Washington State Working Families Tax Credit

Important
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Working Families Tax Credit

About the program
Eligibility (general, residency, and income)
How to apply
Filing with an Individual Taxpayer Identification Number (ITIN)
What to expect after submitting your WFTC Application

About the program

What is the Working Families Tax Credit (WFTC)?

The Washington Working Families Tax Credit is a refund of retail sales or use tax for low-to-moderate income Washington residents who meet certain eligibility requirements.

Do I have to claim the federal Earned Income Tax Credit (EITC) to be eligible for the WFTC credit?

No. You do not have to have claimed or received the federal Earned Income Tax Credit but must meet all eligibility requirements for it. You must also file a federal tax return for the year you are claiming the WFTC credit.

If you would have met all the requirements for the EITC, but are filing with an Individual Taxpayer Identification Number (ITIN), you can still qualify for the Working Families Tax Credit.

What is the credit amount?

The Working Families Tax Credit amount is dependent on the income level and number of qualifying children an applicant can claim. The maximum number of children that an applicant can claim is three. The minimum credit for eligible applicants is $50, regardless of the number of qualifying children. The actual amount received varies depending on income and qualifying children. Not all applicants will qualify.

What if I have questions about the federal advanced child credits?

The Working Families Tax Credit is not the same as the Federal Advanced Child Credit. The Working Families Tax Credit is administered by Washington State Department of Revenue. For information about the Federal Advanced Child Credits call the Internal Revenue Service (IRS). The phone number for the IRS is 1-800-829-1040.

How are you ensuring this program is equitable?

We have formed a Community Outreach Advisory Committee to serve as a voice for the customer and provide feedback on the implementation of the Working Families Tax Credit. In addition, we have held listening sessions to gather input directly from community members and organizations. View the Listening Session Reports.

How can I stay up to date on this credit?

What is SecureAccess Washington?

SecureAccess Washington (SAW) is a single sign-on account to access over 300 Washington state services. It provides login security, such as multi-factor authentication (sends a code to your cell phone or email) and allows you to access multiple accounts to access state services.

How do I know my information is secure?

The Working Families Tax Credit program uses SecureAccess Washington, or SAW. SecureAccess Washington is a single sign-on account to access over 300 Washington state services. It provides login security, such as multi-factor authentication (sends a code to your cell phone or email) and allows you to access multiple accounts to access state services.

How can I learn more about the rule making process?

To learn more about rule making visit:

Eligibility - general

Who is eligible for the Working Families Tax 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:

Have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Lived in Washington a minimum of 183 days (over half the year).
Are at least 25 and under 65 years of age OR have a qualifying child.
Filed a federal tax return the year before they claim the credit.
Eligible to claim the federal Earned Income Tax Credit (EITC) on their tax return (or would meet the requirements for EITC but are filing with an ITIN).
- Go to www.irs.gov/EITC to learn more.
Meet certain income requirements.

What is a qualifying child?

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).

Do I have to be currently employed to qualify for the Working Families Tax Credit?

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.

How much will I get back?

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.

Eligibility - residency

What are the residency requirements for resident servicemembers serving out-of-state or part-time residents?: 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.
Do I still qualify for the credit if my spouse is living out-of-state?: 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.
What if I am in Washington for at least 183 days for work or for school without commuting back to my state of residence? Do I meet the WFTC residency requirement?: 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.
What if I am experiencing homelessness? Can I still qualify?: 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.

Eligibility – income

What are the income limits to qualify for this credit?

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.

What is considered earned income?

Earned income includes wages, salaries, bonuses, commissions, tips, and net earnings from self-employment which are subject to taxes by the federal government. It is called “earned” income because an individual must “earn” it through employment.

What kind of income is not earned income?

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:

Nontaxable employee pay.
Dependent care benefits.
Adoption benefits.
Basic housing allowance.

Disability insurance payment (paid premiums).

Interest.
Dividends.
Pensions.
Annuities.
Social security.
Railroad retirement benefits.
Alimony.
Child support.
Welfare benefits.
Workers’ compensation benefits.
Unemployment compensation.
Nontaxable foster care payments.
Veterans’ benefits.
VA rehabilitation payments.
Inmate income.

Does my qualifying child’s income affect my AGI?

No. A qualifying child’s income is not a factor in your AGI.

Does my foreign income affect me from qualifying for the Working Families Tax Credit?

Yes, having foreign income and filing form 2555 disqualifies you from receiving the Working Families Tax Credit.

Can I have investment income and still qualify for the Working Families Tax credit?

Yes, but investment income cannot exceed $11,000 for applicants filing single or jointly. Examples of investment income include:

Interest.
Dividends.
Rental income.
Royalty income.
Capital gains.
Cryptocurrency interest.

Does my strike compensation count as income towards the Working Families Tax Credit?

Yes. If you receive strike benefits from your Union, you must include payments as earned income to determine your eligibility for the program.

Does my income earned while incarcerated qualify as earned income for the Working Families Tax Credit?

No. Any income you receive while in any penal institution (inmate income), work release program, and/or halfway house is not earned income.

How does alimony or spousal support affect my Working Families Tax Credit eligibility?

Alimony or spousal support you receive is not considered earned income.

How do community property laws affect my Working Families Tax Credit eligibility?

If you file as head of household or married filing separately (under special rules for married taxpayers living apart), your earned income for the WFTC does not include any amount your spouse earned under community property laws. That amount is not earned income for the WFTC, even though you must include it in your gross income on your federal income tax return. Your earned income includes the entire amount you earned.

How does combat pay affect my Working Families Tax Credit eligibility?

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.

Are there any special types of income that can be earned or unearned income based on situation?

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.

How does my spouse’s earned income affect my eligibility for WFTC?

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.

My spouse and I divorced during the tax year that I’m claiming the credit. Is their income considered my income for the WFTC?

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.

How to apply

How do I apply?

You can apply using the following methods:

Online. On the Apply tab select Apply online or click Log in button from the Get help page.

By paper.

Hover over Apply and select Apply by paper from the drop down
Find a local DOR field office:
- Bellingham - 1904 Humboldt Street
- Bothell - 12100 Northeast 195th St Suite 100
- Kent - 20819 72nd Ave South Suite 680
- Port Angeles - 734 E First St Suite B
- Richland - 1657 Fowler Street
- Seattle - 2101 4th Ave Suite 1400
- Spokane - 1330 N Washington Suite 5600
- Tacoma - 3315 S 23rd St Suite 300
- Tumwater - 6500 Linderson Way SW
- Vancouver - 8008 NE 4th Plain Blvd Suite 320
- Wenatchee - 630 N Chelan Ave Suite B3
- Yakima - 3703 River Rd Suite 3
Mail paper applications to:
- Washington State Department of Revenue
  Attn: Working Families Tax Credit Division
  PO Box 47468
  Olympia, WA 98504-7468
Community-based organizations – These organizations have partnered with us to provide local assistance and raise awareness about the Working Families Tax Credit. They can provide education and help with filling out applications. Find an organization near you.
Other resources – You can also check if you qualify for free tax preparation from the Volunteer Income Tax Assistance (VITA) or the American Association of Retired Persons (AARP) centers. Find additional free resources.

Is the application available in Spanish and other languages?

Yes, the online and paper application is available in Spanish.
The paper application is also available in Arabic, Traditional and Simplified Chinese, Khmer, Korean, Marshallese, Russian, Somali, Tagalog, Ukrainian, and Vietnamese.

Can I apply on a mobile phone?

You can use your phone’s browser to submit an application.

How do I know my information is secure?

Filing with an Individual Taxpayer Identification Number (ITIN)

I don’t have a Social Security Number (SSN), can I apply for the Working Families Tax Credit (WFTC) program with an Individual Taxpayer Identification Number (ITIN)?

Yes. You can use your valid ITIN to apply for the WFTC program.

If I do not have an ITIN, how can I get one?

You can file Form W-7, Application for the Internal Revenue Service (IRS) Individual Taxpayer Identification Number (ITIN), with your federal income tax return. You must also include original documentation or certified copies from an issuing agency to prove identity and foreign status. For more information about how to apply, visit www.irs.gov/individuals/how-do-i-apply-for-an-itin.

What is a valid ITIN?

The Individual Taxpayer Identification Number (ITIN) is a tax-processing number issued by the Internal Revenue Service (IRS) to ensure that people—including undocumented immigrants—can file their taxes regardless of their immigration status.
A valid ITIN is one that was issued by the IRS and has not been revoked or expired.

Why would I want to get an ITIN?

An ITIN is primarily for purposes of filing federal taxes, but there are other benefits, including eligibility for WFTC. Some institutions will accept an ITIN to open a bank account, get a driver’s license, apply for loans, obtain a credit card, etc.

When does an ITIN expire?

If your ITIN was not included on a U.S. federal tax return at least once for the previous three tax years, your ITIN will expire on December 31st of the fourth year. For more information about expired ITIN numbers, visit www.irs.gov/individuals/itin-expiration-faqs.

Can I submit my WFTC application while I am waiting for my ITIN to be issued by the IRS?

Yes. The WFTC application must be submitted the year the tax return is due or within three-years after that. If the IRS has received your ITIN application, your WFTC application will be accepted as timely if it is filed the year the tax return is due or within three-years after that even if your ITIN has not yet been issued. However, your application will not be processed, or the refund issued until you receive your ITIN from the Internal Revenue Service (IRS). Once the IRS issues the ITIN, you can contact the WFTC program with this information so your application can be processed.

Where can I go for ITIN filing assistance?

The Department of Revenue (DOR) is working with community outreach grantees that will be able to provide ITIN filing assistance. By November 2022, we will have a list of these local community organizations that you can contact.

Is the WFTC refund a public charge?

No. U.S. Citizenship and Immigration Services (USCIS) has been very clear that tax credits, including the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), are not considered in the public charge assessment. This would also include the WFTC.
The Working Families Tax Credit statute similarly states that this program is not a public charge: “Receipt of the refund under this section may not be used in eligibility determinations for any state income support programs or in making public charge determinations.” Read the complete statute here: RCW 82.08.0206.

How will WFTC affect my other benefits?

Generally, other benefits you may receive will not be affected by WFTC. Receiving WFTC payments is not considered income for any family. However, it is ultimately up to the corresponding public benefits agency to make determinations on eligibility for their programs. You can contact the Department of Social and Health Services (DSHS) at 877-501-2233 for more information.

What if my children live out of the country?

A qualifying child must live with you, or your spouse if filing a married filing jointly tax return, in the United States for more than half of the year to qualify for the credit. So long as the primary applicant lives in Washington for the required 183 days during the tax year, then a child can still qualify if they live with the spouse outside of Washington for more than half the year and meet the other qualifying child requirements. Visit Qualifying Child Rules | Internal Revenue Service (irs.gov) for information on the qualifying child requirements.

Will my information be shared with Immigration Services or other federal or state agencies?

No. Information submitted to the Department of Revenue (DOR) for purposes of claiming the Working Families Tax Credit will not be shared with any federal or state agencies, according to statute: “The department shall protect the privacy and confidentiality of personal data of refund recipients in accordance with chapter 82.32 RCW”. Read the complete statute here: RCW 82.08.0206.

Additionally, information provided to DOR in applying for the WFTC is considered confidential tax information and DOR is unable to disclose it to anyone without express written authorization from the individual. See RCW 82.32.330. This includes information about citizenship or immigration status, which DOR is prohibited from disclosing by law. See RCW 43.17.425.

Is this a one-time refund?

No, this refund is available annually. You may apply for the Working Families Tax Credit every year that you file a federal tax return if you meet the eligibility requirements.

Can I get help in another language?

DOR will make every effort to supply information in as many languages as possible using a variety of means, including informational materials and paper applications. Currently, the website and online application is available in English and Spanish.

We offer the paper application and resources in several languages.

What if I am not a United States citizen or what if I am in the United States on a visa? Can I still qualify as a Washington resident for WFTC purposes?

Yes, if you:

Can demonstrate you were physically present in Washington for at least 183 days during the year for which you are claiming the credit.
Filed a federal income tax return using an ITIN number.