The advantage of stimulus payments is no longer a thing of the past, at least for Washington’s eligible families.
Working Families Tax Credit
The Working Families Tax Credit was officially introduced by Washington’s Department of Revenue on Wednesday after more than a decade of advocacy and years of legislative work. For individuals that qualify, the credit may result in a return of up to $1,200.
More than 400,000 low-income households in the state will gain from the tax credit. People’s eligibility is determined by their income level and the number of qualified children living in their home.
Through the tax credit, a single individual may get up to $300, while families with three or more children may receive up to $1,200. The amount rises by $300 for each additional kid. Based on the qualifying children’s income, the minimum is $50.
According to the Washington State Budget and Policy Center, community groups have been working on the tax credit for more than ten years.
On Medium, Washington Governor Jay Inslee published a piece regarding the tax credit. According to a research from 2021, low-income Washingtonians pay 17% of their income in taxes, compared to 11% for middle-class employees. Taxes are paid by those in the highest income groups at an average rate of 3%.
Programs
Programs like the WFTC, according to Inslee, “are correcting this upside-down tax structure by making Washington’s tax system less regressive.”
The Individual Taxpayer Identification Number (ITIN) scheme, which enables taxpayers to submit their taxes using this number, is a crucial part of the refund program. Undocumented immigrants as well as some visa holders file taxes using ITINs. ITINs are issued by the Internal Revenue Service (IRS) to handle tax returns and payments for those who are not entitled to Social Security numbers.
According to a webpage by the IRS, “they are issued regardless of immigration status, because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code.” “ITINs are only used for federal tax reporting,” the statement reads.
A representative for the Washington Department of Revenue said qualifying applicants will be paid through check or electronic deposit.
Inslee’s Medium piece claims that the state gives immigrants credit for its emphasis on diversity.
Tax Credit
At a news conference announcing the tax credit, SEIU 775 president remarked, “Because here in Washington, we acknowledge the dignity of every single individual in our community.”
The program’s official launch process started in 2021 when Inslee signed the necessary legislation.
Families that meet the requirements can register for the credit on the state website or by utilizing a federal income tax online preparer that is approved, such H&R Block. Although the Department of Revenue cooperated with a number of tax preparers, some, like TurboTax, would not provide the choice.
Following calls for the government to take action to fight inflation, a number of states have enacted various iterations of stimulus checks. Many other states have comparable income tax refund schemes, such as the Middle Class Tax Refund in California, the Colorado Cash Back program, and many more.
Other Reports, Child Tax Credit Deadline
In order to claim their advance Child Tax Credit payments, stimulus payments, and other tax refunds before a deadline approaching, more than 9 million individuals and families must submit a 2021 federal income tax return.
The enhanced tax credit was initially made accessible to millions of children whose caregivers earned too little money to pay taxes as part of President Joe Biden’s $1.9 trillion COVID-19 relief program.
The tax credit was increased to $3,000 for every kid aged 6 to 17 and to $3,600 for children under the age of 5.
