With the 2023 tax season well underway, there are plenty of tax credits available, with some people eligible for a refund of more than $10,000.
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
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.
How do I get a 10,000 tax refund? You could end up with a $10,000 tax refund if you've paid significantly more tax payments than you owe at the end of the year.
It is dependent upon a difference between the tax that is owed to the Treasury at the end of the year and the amount that has been withheld throughout the year. If the amount of tax owed is less than the latter number, that individual receives a tax refund.
Taxpayers also will receive a notice informing them that the account has exceeded the direct deposit limits and that they will receive a paper refund check in approximately four weeks if there are no other issues with the return.
The biggest factor in determining a refund amount is how much you've paid in over the course of the year. Are you making an exact comparison? If the person you're thinking of has more dependents, or a different filing status than you, your tax returns will have widely different results.
If you qualify for tax credits, such as the Earned Income Tax Credit or Additional Child Tax Credit, you can receive a refund even if your tax is $0. To claim the credits, you have to file your 1040 and other tax forms.
You must file your 2020 income tax return with the Franchise Tax Board (FTB) by the deadline to qualify for the Golden State Stimulus. (If you owe taxes, the deadline to pay is May 17, 2021.) CalEITC is a refundable tax credit meant to help low- to moderate-income people and families.
In order to qualify for an instant refund you must have a tax refund that is free and clear from any government debts or liens. This includes all branches of the provincial and federal government. If your refund exceeds the debts, you may qualify for an instant refund on the difference.
If you paid more through the year than you owe in tax, you may get a refund. Even if you didn't pay tax, you may still get a refund if you qualify for a refundable credit.
Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC Adjusted Total Turnover} - 12[{tax payable on such inverted rated supply of goods and services x (Net ITC ÷ ITC availed on inputs and input services)}].
If you make $10,000 a year living in the region of California, USA, you will be taxed $875. That means that your net pay will be $9,125 per year, or $760 per month.
Changes to your income last year may play a role in receiving a smaller refund this tax season. Here are some examples: Salary increase: If you got a salary increase last year but neglected to increase your tax withholding, this could lead to a smaller tax refund when you file.
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