Tax Season is ongoing. The effects of inflation have placed a severe burden on millions of families across the country.
Although annual inflation declined to 6.5 percent last month, from a peak of 9.1 percent in June 2022, it is still three times higher than the pre-pandemic average. As rising prices still strain household finances, while stimulus initiatives come to a conclusion, an increasing number of Americans opt to make advances from their income tax refunds this season.
“One significant change in 2023 is that the COVID-19 relief initiatives and programs have already ended,” H&R Block’s chief tax officer Kathy Pickering told Fox Business.
These relief initiatives include the child tax credit, the dependent care credit, the expanded earned income tax credit, the recovery rebate credit, and the individual dependent care credit.
The Santa Barbara Tax Products Group, an advance tax refund provider (Photo: www.sbtpg,com)
The Santa Barbara Tax Products Group, an advance tax refund provider, has announced that they are raising its loan cap to assist American homes against inflation. According to its website, the San Diego-based tax services firm provides clients nationwide with tax-related financial products and services.
According to Fox Business, the company processes 20% of all Internal Revenue Service (IRS) refunds and administers refund loans for tax preparer agencies and accounting firms.
Last October, the Santa Barbara Tax Products Group (TPG) announced two significant adjustments as part of its 2023 Fast Cash Advance program.
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The modifications would boost the size of its advance refund loans for the 2023 tax season from $6,000 to $7,000 and extend loan availability by two weeks, to March 17.
“The Fast Cash Advance has been offered from Jan. 2 through Feb. 28, but in 2023, we are expanding availability through Mar. 17, 2023, allowing our tax professional partners to have ample time to assist clients with a tax time return advance. ” Opt-in now and select the Pre-ACK advance to begin offering Fast Cash Advance as early as January 2, 2023” according to the release.
Because the normal deadline of April 15 falls on a Saturday this year, and April 17 is Emancipation Day, which is recognized by workers in Washington, taxpayers will have until April 18 to submit their forms or request an extension.
Some taxpayers will surely avail of these tax refund loans as they can no longer wait for their money. For taxpayers who file online and choose direct deposit, the IRS hopes to provide most refunds in less than 21 days. The service, however, will not accept returns until last January 23.
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