Working Families Tax Credit.
The Working Families Tax Credit (WFTC) is a state program for low to moderate income families that offers a partial credit against sales and use taxes paid. To be eligible for credit payments, a person must:
The amount of the credit varies depending on the number of qualifying children and the filer's income level. The maximum credit amount is as follows:
The minimum credit amount for all eligible persons that apply is $50.
The maximum credit amount for the WFTC is reduced by varying percentages at income levels based around the maximum adjusted gross income (AGI) for the federal EITC, which changes annually. The rates of credit reduction also vary based on the number of qualifying children:
To receive a credit, eligible persons must apply to the Department of Revenue (DOR). The DOR has authority to adopt rules necessary to design and implement the program.
Beginning January 1, 2023, the DOR is authorized to annually adjust the rate of credit reductions based on calculations that maintain the minimum credit being received at the maximum federal qualifying income level.