Tax season has arrived, and it's time to review your finances. But what if you could receive a significant tax refund this year?

Are you prepared to claim up to $10,000 in refunds?


The Internal Revenue Service (IRS) has kicked off the tax season, processing returns from January 23 through April 18.

With an estimated 168 million Americans filing their tax returns this year, it's crucial to be aware of the tax credits available to you.

The IRS has confirmed that certain taxpayers, particularly those who qualify for the California Earned Income Tax Credit (CalEITC) and the federal Earned Income Tax Credit (EITC), could see a refund exceeding $10,000.


Here's the breakdown: the EITC could yield a refund of up to $8,046, while the CalEITC could add up to $3,644 more.

On average, refunds from CalEITC hover around $402.

To hit that $11,000 mark, you'll need to be a Californian who qualifies for both credits.

Let's take a closer look at the requirements for each.

Eligibility Criteria for the Earned Income Tax Credit (EITC):​

• Income Limits: Your earnings must not exceed $68,675, depending on the number of children you claim.
• Investment Income Cap: Your investment income must be $11,950 or less.
• Social Security Number: You must have a valid SSN by the tax filing deadline, including extensions.
• Citizenship or Residency: You must be a US citizen or resident alien for the entire tax year.
• Foreign Income: You cannot file Form 2555 for foreign earned income.

Eligibility Criteria for the California Earned Income Tax Credit (CalEITC):​

• Age Requirement: You or a qualifying child must be at least 18 years old.
• Income Limits: Your earnings must be between $1 and $31,950.
• Identification: You, your spouse, or registered domestic partner, and any qualifying children must have a valid SSN or ITIN.
• Residency: You must have lived in California for more than half of the tax year.
• Independence: You cannot be the qualifying child of another taxpayer.
• Dependency Status: You cannot be claimed as a dependent by someone else unless you have a qualifying child of your own.

To receive these credits, you must claim them on your tax return.

The exact amount you're eligible for will depend on your income and the number of qualifying children.

Once the IRS and the California Franchise Tax Board process your return, you'll receive each credit as a refund, minus any owed taxes or outstanding debts with federal or state agencies.

If you've opted for direct deposit, the IRS can start sending payments as quickly as 21 days after you file.

Without direct deposit, you might wait an additional six to twelve weeks.

Note that refunds can't be issued before mid-February.

Special consideration for Californians affected by wildfires​

In light of the devastating California wildfires, the IRS is offering tax relief to those in affected areas.

If you live or own a business in Los Angeles County or other FEMA-designated regions, deadlines for filings or payments due since January 7 have been extended to October 15.

This extension may apply to additional counties if the disaster area expands.

Stay updated on the latest applicable locations by checking the IRS disaster tax relief website.

As Los Angeles certified public accountant Miklos Ringbauer explains, federal activity halts during a disaster declaration, allowing taxpayers to defer income tax payments and retirement contributions without incurring penalties or interest.

Don't let this opportunity slip through your fingers.

If you meet the criteria for these tax credits, take the time to claim them. It could mean a significant boost to your finances, and in these times, every dollar counts.

And remember, if you're in a disaster-affected area, take advantage of the extended deadlines.
Have you ever claimed the EITC or CalEITC? Do you have tips for navigating tax season smoothly? Share your experiences and advice in the comments below. Let's help each other make the most of tax time.