Millions still available through Working Families Tax Credit but many unaware of program

OLYMPIA, Wash. — Washington state officials say millions of dollars are still available for families in need as part of the Working Family Tax Credit.

It’s a new credit that rolled out this year, and the state Department of Revenue is trying to bring attention to it since the agency believes many families are not aware of the program.

Kevin Dixon, the director managing the new tax credit for the state DOR, spoke to KIRO 7. He said the agency believes 400,000 low-to-moderate income families could be eligible, but only about a third have applied so far.

Dixon said part of the issue might lie with the fact that the state government does not collect an income tax, and normally, a family tax credit is linked to income.

He said the credits are also offered in several states that do have income taxes. In Washington, sales taxes are relatively high on nearly all goods and services that people pay for. Dixon said the tax credit aims to take some of that money and put it back in the hands of families in need.

The Working Families Tax Credit could give up to $1,200 to families in need.

“Over the last couple of months, we have refunded $55 million already, so this is huge. This is cash that’s going directly into the pocket of our friends, our family members, our neighbors all over the state who need it the most,” said Dixon.

He added that the state Legislature put $230 million into the fund that could issue the tax credits. With $55 million paid out so far, there’s a lot left for families who are eligible.

People can apply online at this link. Applications will be accepted until Dec 31.

The tax credit was funded through the General Fund from sales tax revenue.