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Tax filing season officially started in the United States last month. The tax season operates from January 27 until April 15 according to Internal Revenue Service (IRS) guidelines. More than 140 million taxpayers need to file their tax returns by the specified deadline, per government records.
The primary responsibility of tax filing is income declaration yet taxpayers can simultaneously pursue several refundable credits. Eligible taxpayers receive tax refunds worth up to $8000 through the Earned Income Tax Credit (EITC), which stands as the leading refundable credit program. You can secure a refund exceeding $11,000 through special requirements in addition to the standard $8,000 Earned Income Tax Credit payment.
IRS Confirms Eligibility Requirements for $11,000 Tax Refund
California residents who meet the eligibility requirements for both the California Earned Income Tax Credit (CalEITC) and federal Earned Income Tax Credit (EITC) at the state level will get more than $11,000 in refund money.
According to Free Tax Prep LA, if you are employed and have a low to moderate income, you could get up to about $10,000 in cash from both the federal and California tax credits.
What is the Earned Income Tax Credit (EITC)?
The EITC is a federal tax benefit paid to low- and middle-income families and individuals. Eligibility depends on your annual income and number of children.
Eligibility for this refund:
- You have earned income.
- Your investment income is less than the maximum limit.
- You have a valid Social Security Number (SSN).
- You are a citizen or resident of the US for the entire year.
- You have not filed Form 2555 (for income earned abroad).
If you are eligible for the EITC, you must fill out Form 1040 (Individual Income Tax Return) or Form 1040-SR (Senior Tax Return).
What is the California Earned Income Tax Credit (CalEITC)?
The CalEITC is for California residents with low or moderate incomes. This credit can give you up to $3,644 in cash back or a reduction in tax liability.
Eligibility for CalEITC:
- You have a qualifying child or are 18 years of age or older.
- Your annual income is more than $1,000 and less than $31,950.
- You and your children have a valid SSN or ITIN (Individual Taxpayer Identification Number).
- You spent more than half of the tax year in California.
- You are not a tax dependent of another person.
If you are eligible for both the EITC and CalEITC, you must claim both on your tax return. Combined, these two credits can give you a maximum of $11,474.
When will you receive an IRS refund?
If you set up direct deposit, the IRS typically issues payments within 21 business days. If you don’t choose direct deposit, you may have to wait 6 to 12 weeks.
What to do to get a maximum refund
- Make sure you claim both EITC and CalEITC on your tax return.
- Use the IRS’s EITC Virtual Assistant and CalEITC Calculator to get maximum benefits.
- Seek guidance from a tax expert or advisor for tax filing.
Conclusion
Tax filing in 2024 is not just limited to reporting your income. It can also bring the opportunity for a tax refund of up to $11,000. If you are eligible for both CalEITC and EITC, take full advantage of this opportunity and file your tax return as soon as possible.
FAQs
Q. Who is eligible for the $11,000 IRS tax refund?
A. Individuals in California who qualify for both the Earned Income Tax Credit (EITC) and California Earned Income Tax Credit (CalEITC) may receive up to $11,000.
Q. How do I claim the Earned Income Tax Credit (EITC)?
A. You must file Form 1040 or 1040-SR and include Schedule EIC if claiming the credit for a qualifying child.
Q. When will I receive my IRS refund?
A. If you choose direct deposit, the IRS typically processes refunds within 21 business days. Paper checks may take 6 to 12 weeks.
Q. What is the maximum income limit to qualify for CalEITC?
A. To be eligible for CalEITC, your income must be between $1,000 and $31,950 per year.
Q. Can I claim both EITC and CalEITC?
A. Yes, if you meet the eligibility criteria, you can claim both credits to maximize your tax refund.
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