Add 1 tbsp oil to a large saucepan or dutch oven over medium heat. Once the pan is hot, add peppers, onions, carrots, salt, pepper, cayenne and chili powder. Cook for 8-10 minutes, stirring occasionally, until veggies are tender. Add garlic and cook for 1 more minute. Add remaining ingredients and bring to a low simmer. Simmer for 40 minutes.
While the soup is simmering, make tortilla strips by tossing the strips into a large skillet over medium heat. Stir strips around for about 1-2 minutes until lightly crisp and golden on both sides. Remove from pan and set on a paper towel to cool.
Once soup is done simmering, remove from heat and let cool for about 5 minutes.
Serve your chicken tortilla soup with tortilla strips, chunks of avocado and jack cheese. Enjoy!