Washington Tax Changes - January 2025

Washington Sales & Use Taxes—Washington issues annual update for Working Families Tax Credit.

The Washington Department of Revenue has issued its annual updates for the Working Families Tax Credit (WFTC) refund program. For the 2024 tax year, taxpayers who are eligible to receive the WFTC refund may receive up to these amounts based on the number of qualifying children they have: no qualifying children, $325; one qualifying child, $640; two qualifying children, $965; and three or more qualifying children, $1,290. For the 2024 tax year, for each dollar over the reduced federal threshold amount, the Department will reduce the refund by the following amounts: no qualifying children, $0.13 (13.0%); one qualifying child, $0.128 (12.8%); two qualifying children, $0.193 (19.3%); and three or more qualifying children, $0.258 (25.8%). The minimum refund amount is $50, regardless of the number of qualifying children. The WFTC refund application for the 2024 tax year may be filed from February 1, 2025 through December 31, 2028. (Washington Excise Tax Advisory No. 3240.2025, 01/02/2025.)