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Department of Revenue: working families tax credit issued more refunds in year two; outreach and process changes boosted claims

2112195 · January 14, 2025
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Summary

The Department of Revenue reported a 22% year-over-year increase in Working Families Tax Credit refunds for 2024, credited outreach grants, processing improvements and expanded vendor integration for the gains. The department plans further outreach and integration with IRS direct-file and TurboTax in 2025.

The Washington State Department of Revenue told the House Finance Committee on Jan. 14 that the Working Families Tax Credit (WFTC) issued more and faster refunds in its second year of operation, and outlined outreach and administrative changes intended to expand participation.

Steve Ewing, legislative and external affairs liaison for DOR, said year-two results showed a 22% increase in refunds and a 28% increase in dollars refunded compared with 2023. "In year 2, 80% of refunds went to households with children," Ewing said, and he added that roughly two-thirds of refunds were issued within 30 days following application processing improvements.

Why this matters: the WFTC was enacted to reduce regressivity in state and local taxes and to boost income for low- and moderate-income…

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