Officially, tax season has begun. The IRS will receive and process 2024 tax returns between January 27 and April 15. According to government figures, more than 140 million taxpayers are anticipated to file their returns on time. Although the primary goal of tax filings is to alert the IRS of income, you can also apply for a variety of refundable tax credits. One of the most notable is the Earned Income Tax Credit (EITC), which offers qualified taxpayers with refunds of up to $8,000. Some persons, however, may be entitled for refunds totaling more than $11,000 if they meet specific standards.
The Internal Revenue Service (IRS) has confirmed a $11,000 refund to those individuals who meet these requirements
Refunds in excess of $11,000 are only available to Californians who qualify for both the state-level California Earned Income Tax Credit (CalEITC) and the federal Earned Income Tax Credit (EITC). If you work and have a low to moderate income, you can earn over $10,000 in cash from both the federal and California Earned Income Tax Credits, according to Free Tax Prep LA, a program that assists Californians with tax preparation. Individuals and families with low to moderate incomes are eligible for the EITC, which is a refundable payment.
Earned Income Tax Credit (EITC)
Families and individuals with low to moderate incomes are eligible for this federal tax break. The number of eligible children and the annual income determine eligibility. To be eligible for this IRS refund, Americans must fulfill the following requirements:
- Have made money
- Have less than the maximum amount of investment income
- Possess an up-to-date Social Security number
- Be a resident alien or a citizen of the United States for the whole year.
- Don’t submit Form 2555 (for foreign-earned income).
To claim the Earned Income Tax Credit (EITC), Americans must file Form 1040, Individual Income Tax Return, or Form 1040-SR, Senior Tax Return. If you want to claim the Earned Income Credit for an eligible child, you must also include the Schedule EIC (Form 1040 or 1040-SR) with your return. If you are claiming the credit without a qualified child, you are not need to file the Schedule EIC.
California Earned Income Tax Credit (CalEITC)
The California Earned Income Tax Credit (CalEITC) helps working Californians with low incomes. You may be entitled for cashback or a reduction in your tax burden of up to $3,644. You may also be able to get additional advantages through CalEITC, such as the Young Child and Foster Youth tax credits. Residents of California may be eligible for this additional state credit if they meet certain income and other restrictions, which are stated below:
- Have an eligible child or be at least 18 years old.
- Have made a minimum of $1,000 per year and no more than $31,950.
- Ensure that you, your spouse, and any eligible children have a valid Social Security number or Individual Taxpayer Identification Number (ITIN).
- Spend more than half of the tax year in California.
- Not be able to be claimed as another taxpayer’s qualifying dependent or kid.
If both credits are available to you, you must include them on your tax return. The exact amount depends on your annual income and the number of eligible children, but the maximum amount for both credits is $11,474. You can get an idea by utilizing the EITC virtual assistant and the CalEITC calculator.
When will Americans receive their IRS refund?
Both credits will be reimbursed once the IRS has processed your tax return. If you have direct deposit, the IRS will usually disburse your payment within 21 business days of processing it. Depending on the circumstances, the waiting period for those without direct deposit could last anywhere from six to twelve weeks. To maximize your refund this year, include both the EITC and CalEITC on your tax return if you qualify for both.
Also See :- 3 basics you need to know to qualify for more Social Security benefits
