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Low-income tax credit now available in Washington

About the Author
Jason Mercier
Director, Center for Government Reform

It took more than a decade, but Washington has now joined several other states across the country by providing a targeted low-income tax credit. Originally signed into law by Governor Gregoire in 2008, it took lawmakers until 2021 to approve funding for the Working Family Tax Credit.

This targeted low-income tax assistance program is modeled after the Federal Earned Income Tax Credit which is also provided at the local level by several states with income taxes. Along with recommending broad-based tax relief (yet to be provided), we encouraged lawmakers to prioritize funding this tax credit during our testimony at a 2019 House Finance Work Session on the state’s tax structure.

Here are the basics of eligibility for the Working Family Tax Credit according to the Department of Revenue:

The Washington Working Family Tax Credit is not self-executing. Eligible low-income Washingtonians need to proactively apply for the credit. You can check your eligibility here.

Lawmakers finally funding this low-income tax relief program is a cause for celebration. The next step is for state officials to follow the lead of the rest of the country and also provide inflation-hammered taxpayers with broad-based tax relief, with no eligibility verification or application required.

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