Washington Enacts Earned Income Tax Credit

Washington Governor Jay Inslee (D) signed legislation to enact a state Earned Income Tax Credit (EITC), also known as the Working Families Tax Credit or Recovery Rebate. The Washington State Budget & Policy Center (Budget & Policy Center) estimates that the rebate will benefit 420,000 households throughout the state.

The credit will offer an annual cash rebate ranging from $300 to $1,200 depending on household size and income level. Additionally, the legislation offers eligibility to filers using Individual Taxpayer Identification Numbers (ITINs), a group that is excluded from claiming the federal EITC and most state-level credits. The Budget & Policy Center highlighted that the rebate will also improve gender equity in the state, benefiting women of color, mothers and parents, LGBTQ+-identifying residents, and survivors of domestic violence.

Misha Werschkul, executive director of the Budget & Policy Center, said, “This legislation is a monumental move toward balancing our tax code and making sure that all Washingtonians – regardless of our race, gender, immigration status, or region – can provide for ourselves and loved ones.”

To learn more about other state-level tax credits across the country, visit our 50-state map here.