The United State’s tax season is in full swing. It kicked off 23 January and runs through until 18 April, the Internal Revenue Service (IRS) will be receiving and processing tax returns from companies and individual taxpayers for fiscal year 2022. According to official figures from the government entity, in 2023 around 168 million Americans are expected to file their respective tax returns.
Year after year, thousands of people are eligible to receive tax credit that can result in a refund. However, not all potential beneficiaries claim the money, leaving thousands of dollars on the table. Here’s how you might be eligible for a refund of more than $10,000 from the IRS.
IRS refund over $10,000: who is eligible and how to apply
Individuals who are eligible for the Earned Income Tax Credit (EITC) and the California Earned Income Tax Credit (CalEITC) may be able to receive a refund of more than $10,000.
“If you are low-to-moderate income and worked, you may be eligible for the Federal and State of California Earned Income Tax Credits (EITC). The Federal EITC is a refundable credit available to low-to-moderate income individuals and families that is worth up to $6,935. The CalEITC is worth up to an additional $3,417,” notes the organization Free Tax Prep LA, which helps prepare taxes.
The #IRS Earned Income Tax Credit has helped workers with low and moderate incomes get a tax break for decades, but it may be brand new to someone you know. Help spread the word about #EITC: https://t.co/AqeTmmH4gxpic.twitter.com/s58MJ8ugso
Have earned income of at least $1.00 and not more than $30,000
Have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) for yourself, your spouse, and any qualifying children
Living in California for more than half of the tax year
Not be eligible to be claimed as a qualifying child or dependent of another taxpayer
How and when will the money arrive?
If you are eligible to collect both credits, you will need to claim them through your respective tax return. The exact amount depends on the total number of qualifying children, as well as your annual income.
CalEITC Credit 2022
No. of qualifying children
California income limit
Max. CalEITC
Max. YCTC
Max. FYTC
Max. federal EITC
None
$30,000
$275
$0
$1,083
$560
1
$30,000
$1,843
$1,083
$1,083
$3,733
2
$30,000
$3,037
$1,083
$1,083
$6,164
3
$30,000
$3,417
$1,083
$1,083
$6,935
Payment for each credit will come to you as a refund, minus any taxes owed and debts with the IRS or another federal or state agency, once the IRS and the California Franchise Tax Board have processed your tax return. The federal tax agency has up to 21 days after processing your return to start issuing payments, as long as you have a linked account for direct deposit, otherwise the timeline can be extended from six to twelve more weeks.
You get a refund if you overpaid your taxes the year before. This can happen if your employer withholds too much from your paychecks (based on the information you provided on your W-4).
You get a refund if you overpaid your taxes the year before. This can happen if your employer withholds too much from your paychecks (based on the information you provided on your W-4).
There are literally hundreds of reasons that that “some people get large tax refunds ($10,000+) and others owe taxes…” It is because the people who get refunds pay more into the system than they owe. These payments come in the form of payroll deductions or quarterly estimated payments.
However, the size of the refund you receive depends on a wide range of factors. Things like how much money you earned, how much you paid into taxes and what expenses you faced throughout the year all play a role. Moreover, if you're a homeowner, you may be able to increase your tax return even further.
You become eligible for the income tax refund if you meet any of the following criteria: a) Your total advance tax payments are more than 100% of your actual tax liabilities for the financial year. b) Your TDS payments in the financial year exceed your final tax liability after regular assessment.
If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or $3,862 per month.
If you are facing financial hardship, can't buy medicine, can't pay mortgage or rent and received an eviction notice, or can't pay utilities and got a shut-off notice, and you need your refund sooner, the IRS may be able to expedite the refund.
Direct deposit to bank account: Direct deposit is when your tax refund is deposited into your bank account. This is the quickest refund method, and you might receive your refund within one to three weeks, depending on your filing method.
Maximum Refund Guarantee / Maximum Tax Savings Guarantee - or Your Money Back – Individual Returns: If you get a larger refund or smaller tax due from another tax preparation method by filing an amended return, we'll refund the applicable TurboTax federal and/or state purchase price paid.
Take a look at your existing W-4 and your deductions from your last federal tax return. Increase the deductions amount on your W-4 form to meet the amount on your income tax returns. Make sure to look at student loan interest and IRA contributions, which are included in addition to your deductions estimation.
Introduction: My name is Nathanael Baumbach, I am a fantastic, nice, victorious, brave, healthy, cute, glorious person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
