Tax Season 2025
Tax refund over $10,000: These are the taxpayers who are eligible and how to apply
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.
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.
Qualifying for the EITC means a potential tax refund of $8,046, while CalEITC could return you up to $3,644. The average CalEITC refund is $402.
In other words, to receive a refund of more than $11,000 you must be a Californian eligible for both tax credits. Below are the requirements for each:
EITC
Income sources: You must have earned income of at most $68,675, depending on how many children claimed.
Investment cap: Your investment income should not exceed $11,950.
Social Security number: You need a valid SSN by the tax return deadline (including any extensions).
Citizenship or residency: You must be either a U.S. citizen or a resident alien for the entire tax year.
Foreign income exclusion: You cannot file Form 2555 for Foreign Earned Income.
CalEITC
- Age requirement: You should be 18 or older, or have a child who qualifies.
- Income threshold: Your earnings must fall between $1 and $31,950.
- Identification: You, your spouse/registered domestic partner, and any qualifying children must have a valid Social Security Number or ITIN.
- Residency: You must have resided in California for more than six months of the tax year.
- Independence: You cannot be claimed as another taxpayer's qualifying child.
- Dependency status: You cannot be eligible to be claimed as someone else's dependent, unless you have a qualifying child of your own.
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.
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. It cannot be sent before mid-February.
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