Tax refund over $10,000 – Find out if you qualify and how to claim it before it’s too late

As you may know, it’s already tax season in the United States, so get all your paperwork ready because we have to do it now. Starting January 23, you’ll have until April 18 to file your tax return with the Internal Revenue Service (IRS), but do you know all the payments you can request? Because many people haven’t heard that you can get a refund of up to $10,000 in a few simple steps! Yes, you read that right: the federal and state governments have a program designed to support those who need it most, and you could be one of the beneficiaries. Are you interested?

The IRS is going to process millions of requests, but it’s up to you to choose or not this benefit that could turn your economy around this year. If you’re a California resident, this is of interest to you!

What refund are we talking about?

It’s not just one, it’s two! So, stay tuned. The first is called the Earned Income Tax Credit (EITC), and the second, the California Earned Income Tax Credit (CalEITC), two tools designed for lower-income workers to help their family economy, but who exactly can qualify for each payment?

Requirements for the EITC

For the EITC you will need to meet the following points:

1. Depending on the qualifying children you have, have an income that does not exceed $68,675
2. You will have to have a valid Social Security number
3. Have not had foreign income using Form 2555
4. Be a US citizen (or resident for the entire tax year)

CalEITC Requirements

For California residents, this credit also has its own rules

1. You must be at least 18 years old or have a qualifying child. 2. Your income must be between $1 and $31,950 (people who earn more than this amount will not be able to get this payment)
2. Both you and your family need a valid SSN or ITIN.
3. You will need to have lived in California for at least six months during the tax year.

If you meet the requirements (for both the CalEITC and the EITC), the sum could go up to $11,690, combining $8,046 from the EITC credit and $3,644 from the CalEITC.

How can I claim these credits?

Applying for these credits is very simple, and you only need to include them in your tax return, so once you file your forms, the IRS will take care of everything and send you your refund, and depending on how you prefer to get it you will have two options.

1. Up to 21 days after your return is approved: if you have chosen direct deposit, it will arrive in your bank account.
2. Between 6 and 12 weeks if you chose a paper check.

Does anyone miss out on these credits?

Yes! And the main reason they don’t claim these tax credits every year is because they fear the process will be complicated, but as you can see, it is very simple and it is money that is useful for anything, especially to have a financial forecast for the year. Another reason why many people don’t ask for this credit is that they don’t know about its existence… but who would want to miss out on $10,000!

What can I do?

If you think you meet the requirements we have told you about before, it’s very easy. Start by checking your data from last year to see if you meet the requirements. Make sure you have all the documents they ask for on hand when you go to file your tax return.

If you have any doubts, you can consult with financial experts who can help you file your tax return.

We need to start to stop being afraid of tax season, which sometimes isn’t so bad. The EITC could be the boost we’ve been waiting for, claim it!