Modifying the working families' tax credit by enhancing collection services and increasing participation rates through data-sharing agreements.

HB 1224 proposes to modify Washington State's Working Families' Tax Credit to make it easier for eligible low-income residents to claim the benefit. The bill would enhance the credit's administration by allowing the Department of Revenue to use data-sharing agreements with other agencies (like the Department of Social and Health Services) to verify eligibility and reduce application barriers. Eligible individuals - defined as Washington residents who file federal tax returns and meet income thresholds - would receive annual refunds ranging from $300 (no qualifying children) to $1,200 (three or more children), adjusted for inflation. The changes aim to increase participation rates by streamlining the application process and clarifying eligibility rules, though the bill remains pending in the legislature as of its January 2025 introduction.