ESD weekly claims impact on Working Family Tax Credit eligibility?

From what I understand, unemployment benefits DON'T count as earned income for the Working Family Tax Credit. The credit is specifically for people with earned income (like W-2 wages or self-employment). UI benefits are considered unearned income by the IRS. So if UI is your only income for 2025, you probably won't qualify. But if you had some work income before getting laid off or after you get a new job, that part could count toward qualifying.

my sister got this credit last year!!! u need at least SOME w2 income but not sure how much. i think she only worked like 3 months total last year but still qualified. check the wa state dept of revenue website

I'm in the same boat! Been on unemployment since February when the restaurant I managed shut down. This tax credit sounds helpful but the rules are so confusing. Does anyone know if my January and early February income would be enough to qualify? I made about $4,200 before losing my job.

Hey there, tax professional here. Just to clarify some confusion about the Working Family Tax Credit: 1. Unemployment benefits are NOT considered earned income 2. You need at least some earned income (wages, self-employment) to qualify 3. The credit ranges from $300-$1,200 depending on your filing status and qualifying children 4. The income from January before your layoff DOES count as earned income 5. There is no minimum earned income requirement, but there are maximum income limits If you need help determining your eligibility or have other questions about how your unemployment affects your taxes, I recommend calling the Department of Revenue directly. Unfortunately, their phone lines are often jammed like ESD's.

DONT WASTE UR TIME!!! This credit is TINY compared to what they TAKE from us in taxes!!!! My cousin got only $500 and had to file all this extra paperwork. Meanwhile WA state unemployment taxes are INSANE on businesses which is why we all got laid off to begin with!!!!

Ok, so I just called DOR (took forever to get through!) and thought I'd share what I learned in case anyone else is in the same boat. For the Working Family Tax Credit: - My 5 weeks of work in January DOES count as earned income - There's no minimum amount of earned income required to qualify - UI benefits DON'T count toward the earned income requirement - BUT UI benefits DO count toward the maximum income limits - Filing for the credit won't affect my UI claim in any way So basically, I might qualify based on my January income if my total income (including UI) doesn't exceed the limits. Hope this helps someone else!

Just to add some additional helpful information: The Working Family Tax Credit application typically opens in February each year. You'll need to file through the Department of Revenue website, not through your regular tax return (Washington doesn't have state income tax). You'll need: 1. Your federal tax return information 2. Proof of Washington residency 3. Your Social Security Number or ITIN 4. Direct deposit information (if you want faster payment) For anyone currently on unemployment, remember that while your UI benefits don't count as earned income for this credit, they do count toward the maximum income threshold. Also, if you're currently on standby status with your employer or have a definite recall date, that doesn't change anything about your eligibility for this tax credit.

The application deadline is typically December 31st of the year after the tax year. So for the 2025 tax year, you'd have until December 31, 2026 to apply. But I wouldn't wait that long - the sooner you apply after February when applications open, the sooner you might receive your credit.