The working families tax credit (WFTC) began issuing remittances in 2023. Low-income people of any age are eligible if they have children. Low-income people with no children are eligible if they are 25 to 65 years old. The amount of the remittance is based on the number of children and phases out with income. Maximum 2024 remittances (for the 2023 tax year) will range from $315 to $1,255.

For fiscal year 2023, the state appropriated $221.0 million for working family tax credit (WFTC) remittances. Actual remittances for 2023 applications ended up being only $116.1 million, according to the Department of Revenue (DOR).

The enacted 2023–25 budget appropriated $235.0 million for FY 2024 and $248.0 million for FY 2025 for WFTC remittances. Based on the Nov. 2023 caseload forecast, the governor’s 2024 supplemental budget proposal would reduce those amounts to just $180.0 million for FY 2024 and $243.0 million for FY 2025.

According to the caseload forecast, there were 131,655 applicants in FY 2023. The Caseload Forecast Council estimates that the number of applicants will grow to 249,050 in FY 2024 and 328,674 in FY 2025. The chart shows how those figures are distributed, by the number of children in the household. Note that the number of applicants with three or more children exceeded the number of applicants with no children in FY 2023, but going forward, the number with no children is expected to be higher than the number with three or more.

The next chart shows the number of applicants and the total amount of remittances, by number of children. (This data is through Sept. 2023.) Applicants with no children account for 19.0% of total applicants but only 7.5% of total remittances.

Some bills have been introduced that would make changes to the WFTC program:

• SHB 1075 is scheduled to be heard by the House Appropriations Committee on Thursday. It would allow anyone who is at least 18 claim the credit (regardless of whether they have children). In a Jan. 18, 2024 Ways & Means Committee meeting, DOR estimated that expanding the age range would increase the number of participants by 104,000 and increase the amount of remittances by $33.0 million.
• HB 2418 (and its companion SB 6250) would increase the amount of the remittance by $300 for applicants who are renters. The additional amount would be adjusted for inflation annually, and it would follow the same phase-out schedule as the normal remittances. There is no fiscal note yet.