SSB 5768
In CommitteeSenate
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 Washington’s Working Families’ Tax Credit to more low- and moderate-income residents, including people aged 18–64 without qualifying children, ITIN filers, and those filing separately. It increases access and simplifies administration while adjusting benefits for inflation.
- Expands eligibility to anyone age 18 or older who meets income and residency requirements — removing the previous age requirement (which excluded people under 25 without qualifying children).
- Increases access for people who file taxes using an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number, and for people who file as married filing separately.
- Sets refund amounts at $300 (no children), $600 (1 child), $900 (2 children), or $1,200 (3+ children), with reductions based on income above a threshold.
- Requires applicants to apply through the Department of Revenue, with a paper or online application, and allows up to three years to claim past credits.
- Includes annual inflation adjustments starting in 2024, using the Seattle-area consumer price index, with credits rounded to the nearest $5.
- Prohibits use of the credit in public charge or income-support program eligibility determinations.
Who is affected
- Low- and moderate-income working Washington residents — Low- and moderate-income individuals and families who pay sales or use tax in Washington and meet income and residency requirements. This includes people who file taxes with an Individual Taxpayer Identification Number (ITIN), people who file separately, and people aged 18–64 without qualifying children.
- Working families with children — Families with one or more qualifying children (such as dependent children) who meet income thresholds. Larger families receive larger credits.
- ITIN filers and their families — People who do not have a Social Security Number but have an ITIN — including some immigrants — and meet other eligibility criteria.
- Washington State Department of Revenue — The state government, specifically the Department of Revenue, which must administer the credit, verify eligibility, and conduct outreach.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Expanding eligibility to individuals aged 18+ without qualifying children—including those previously excluded under the prior 25+ age requirement—directly benefits low-income young adults, many of whom work but earn too little to benefit from other tax credits, and who are disproportionately people of color and renters.
FinancialPeopleRef: RCW 82.08.0206(2)(a)(ii)(C)Allowing ITIN filers (including many immigrant workers and families) to qualify significantly expands access to tax relief for a group historically excluded from state tax benefits, reducing discrimination in tax policy and improving economic inclusion.
Rights & LibertiesPeopleRef: RCW 82.08.0206(2)(a)(ii)(A)Permitting married individuals filing separately to qualify (without requiring spouse’s consent or joint return) helps protect vulnerable spouses—especially in cases of domestic separation, abuse, or financial control—by allowing them to claim credit independently.
FinancialPeopleRef: RCW 82.08.0206(2)(a)(ii)(B)Prohibiting use of the credit in public charge or income-support eligibility determinations prevents immigration-related penalties and reduces chilling effects, enabling broader participation among immigrant communities without fear of immigration consequences.
Rights & LibertiesPeopleRef: RCW 82.08.0206(5)Inflation-adjusted credits starting in 2024 (using Seattle-area CPI) and rounded to the nearest $5 ensure the benefit retains real purchasing power over time, protecting low-income households from erosion of value—especially important in high-cost regions like Puget Sound.
FinancialPeopleRef: RCW 82.08.0206(3)(a) & (d)
Potential Concerns (5)
The credit is funded by sales and use tax revenue, which means everyday Washingtonians who pay those taxes—including low-income residents—bear the cost of funding the credit, even as they may receive partial relief. While the credit is refundable and targeted, the underlying tax base remains regressive, and the net effect is a reallocation of burden rather than a net reduction in overall tax regressivity.
FinancialPeopleRef: RCW 82.08.0206(2)(a)(i)(C)The $50 minimum refund floor may disproportionately benefit those just above the phase-out threshold (who would otherwise receive $0–$49), while those just below the threshold but with slightly higher income may receive no credit at all—creating a cliff effect that penalizes marginal income gains for the lowest-income households.
FinancialLean peopleRef: RCW 82.08.0206(3)(c)The requirement to apply separately through DOR (rather than automatic refundability tied to federal EITC filing) creates administrative barriers for the least tech-savvy or least informed residents—particularly seniors, people with disabilities, and non-English speakers—reducing actual take-up despite expanded eligibility.
FinancialLean peopleRef: RCW 82.08.0206(4)(a)(iv)(A)Removing the age restriction (now 18+) may increase program costs and dilute benefits for the target population (low-income workers with children), as some younger, higher-earning individuals without dependents may now qualify—though the income phase-out limits this effect.
Rights & LibertiesRef: RCW 82.08.0206(2)(a)(ii)(C)The phase-out reduction rates (12–18%) are steeper than the federal EITC (≈15.7% for families with children), meaning some households may lose benefits more quickly as income rises—potentially discouraging work hour increases or wage growth for those near the threshold.
FinancialLean peopleRef: RCW 82.08.0206(3)(b)
Who Is Most Affected
Low-income working adults without children—especially young adults aged 18–24, people experiencing homelessness, gig workers, and those in precarious employment—gain access to refundable tax relief for the first time, improving disposable income and reducing reliance on emergency services.
ITIN filers—including many immigrant workers in agriculture, construction, and service industries—gain formal recognition and direct financial support, reducing exclusion from state tax benefits and improving economic stability for their households.
Married individuals filing separately (e.g., in separation, abuse, or financial distress) gain independent access to credit without spousal cooperation, enhancing autonomy and safety for vulnerable spouses.
The state’s sales tax base remains regressive, and funding the credit through sales/use taxes means lower-income residents effectively subsidize part of the benefit—even as they receive direct relief—limiting net progressivity.
The Department of Revenue gains new administrative responsibilities (outreach, verification, fraud detection), requiring increased staffing and IT investment—but the bill includes authority for rulemaking and interagency coordination to support implementation.