HB 1214
In CommitteeHouse
Working families' tax credit
Expanding eligibility for the working families' tax credit to everyone age 18 and older.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill expands the Working Families’ Tax Credit to more low- and moderate-income Washington residents, including those without Social Security Numbers and people ages 18–64 without qualifying children. It provides refundable credits of $300–$1,200 based on family size and income, with annual inflation adjustments, and requires the state to review the program’s impact by 2030.
- Expands eligibility for the Working Families’ Tax Credit to individuals age 18 and older who meet income and filing requirements, including those using an Individual Taxpayer Identification Number (ITIN) or filing as married filing separately.
- Sets refund amounts at $300 (no children), $600 (1 child), $900 (2 children), and $1,200 (3+ children), with phase-out reductions based on income above certain thresholds.
- Requires applicants to apply through the Department of Revenue (with paper and electronic options), keep supporting records, and may be subject to verification using federal and state data.
- Includes annual inflation adjustments to credit amounts (rounded to the nearest $5), starting in 2024, based on the consumer price index for the Seattle area.
- Prohibits use of the credit in public charge determinations or for eligibility in state income support programs.
- Includes a sunset clause: the program expires in 2030 unless the Joint Legislative Audit and Review Committee finds it provides meaningful financial relief to low- and middle-income households.
Who is affected
- Low- and moderate-income working individuals and families — Low- and moderate-income individuals and families who meet income thresholds and file tax returns (including those using ITINs or filing separately) may receive a refundable tax credit to offset sales or use taxes paid. The credit amount increases with the number of qualifying children and phases out as income rises.
- Workers without Social Security Numbers (e.g., ITIN holders) — People who do not have a Social Security Number but have an Individual Taxpayer Identification Number (ITIN), including those filing separately or who are age 18–64 without qualifying children, gain new eligibility under this bill.
- Washington State Department of Revenue — State agencies like the Department of Revenue will administer the credit, including processing applications, verifying eligibility, and issuing refunds.
- Washington State Legislature (specifically CLAR) — The Joint Legislative Audit and Review Committee (CLAR) will evaluate the program’s effectiveness and decide whether to extend or sunset the law.
Pro/Con Analysis
Stronger case for concerns
Potential Concerns (5)
The credit is refundable and funded by sales and use tax revenue, meaning low- and moderate-income households receive direct cash payments that offset regressive consumption taxes they pay — effectively providing net financial relief to those most burdened by Washington’s tax structure.
FinancialPeopleRef: Sec. 1(2)(a)(ii)(C)Expanding eligibility to ITIN holders and married filing separately filers removes prior barriers that excluded many immigrant and low-income spouses from tax relief, advancing equitable access to public benefits and reducing exclusionary practices in tax policy.
Rights & LibertiesPeopleRef: Sec. 1(2)(a)(ii)(A) and (B)Inflation-adjusted credits ($300–$1,200) with automatic annual increases ensure long-term purchasing power for recipients, preventing erosion of benefit value over time — a feature especially important for households living paycheck to paycheck.
FinancialPeopleRef: Sec. 1(3)(a) and (d)Explicit prohibition against using credit receipt in public charge determinations or income support eligibility reduces fear and administrative barriers for immigrant families, encouraging uptake and improving household stability.
Public SafetyPeopleRef: Sec. 1(5)The $50 minimum refund floor prevents tiny, administratively impractical payments (e.g., $12–$48), improving efficiency and ensuring meaningful benefit delivery — though this benefit is modest relative to the full credit amounts.
FinancialLean peopleRef: Sec. 1(3)(c)
Who Is Most Affected
Low- and moderate-income workers — especially those earning below 200% of federal poverty level — gain direct cash assistance that offsets sales tax burden, improving disposable income and economic security. ITIN holders and married filing separately filers gain inclusion previously unavailable under prior law.
ITIN holders and non-SSN filers gain full access to state tax relief for the first time, reducing exclusion and increasing equity. However, some may still face barriers to application due to digital access or language, though the bill mandates paper options.
The Department of Revenue gains new administrative responsibilities (application processing, verification, outreach), increasing workload and costs — though the bill includes funding for outreach and allows use of automated federal data matching to offset some burden.
CLAR gains oversight authority to evaluate program effectiveness and decide its future — but the 2030 sunset and requirement for a formal review introduces uncertainty for long-term planning by beneficiaries and agencies.