As tax season kicks off, many Californians are looking for ways to boost their IRS refunds. While a $10,000 refund isn’t guaranteed for everyone, smart financial planning and understanding available tax credits can help you get the most money back.
With recent adjustments by the IRS, taxpayers can take advantage of increased deductions, valuable credits, and strategic filing methods to secure a bigger refund. Let’s break it down step by step.
1. Higher Standard Deductions Mean More Money Back
For the 2025 tax year, the IRS has increased the standard deduction, which helps reduce your taxable income. The new deduction amounts are:
- $15,000 for single filers (up $400 from 2024)
- $30,000 for married couples filing jointly (up $800 from 2024)
- $22,500 for heads of household (up $600 from 2024)
This means if you take the standard deduction, you’ll owe less in taxes, increasing your potential refund.
2. Take Advantage of Big Tax Credits
Unlike deductions, which lower taxable income, tax credits directly reduce the tax you owe. Some credits can even result in a refund larger than the amount of tax paid!
- Child Tax Credit (CTC): Parents can claim up to $2,000 per child under 17. If you qualify, this can significantly increase your refund.
- Earned Income Tax Credit (EITC): If you’re a lower-income worker, you could get up to $8,046 with this credit, depending on your income and number of children.
- Education Credits: College students or parents paying tuition should check out the American Opportunity Tax Credit (AOTC) (up to $2,500 per student) and the Lifetime Learning Credit (LLC) (up to $2,000 per tax return).
3. Don’t Forget Valuable Tax Deductions
If your eligible deductions exceed the standard deduction, itemizing your taxes may result in even bigger savings. Some of the most common deductions include:
- Mortgage Interest: Homeowners can deduct interest paid on their mortgage, lowering their taxable income.
- State and Local Taxes (SALT): You can deduct up to $10,000 in state income taxes, local taxes, and property taxes.
- Charitable Donations: If you’ve given money or goods to a qualified charity, you may be able to deduct those contributions.
4. Boost Your Refund with Retirement Contributions
One of the best ways to lower your tax bill and increase your refund is by contributing to retirement accounts like a Traditional IRA or 401(k). These contributions reduce your taxable income, meaning you keep more of your money instead of paying taxes on it.
5. Californians Get Extra State-Specific Benefits
California residents have additional tax credits that can help increase their refunds even further:
- California Earned Income Tax Credit (CalEITC): Low-income earners can claim this on top of the federal EITC for even more savings.
- Young Child Tax Credit (YCTC): If you qualify for CalEITC and have a child under six, you may get even more money back.
6. File Early and Choose Direct Deposit
The IRS officially started accepting tax returns on January 27, 2025. The earlier you file, the faster you’ll get your refund. Choosing direct deposit can also speed up the process, with most refunds arriving within 21 days.
Final Thoughts
Getting a $10,000 tax refund isn’t just about luck—it’s about knowing the tax laws, claiming the right credits, and making strategic financial moves. If you want to maximize your return, consider working with a tax professional or using trusted tax software to ensure you don’t leave any money on the table.
