The Santa Barbara Tax Products Group, an advance tax refund provider, is raising its loan limit to take into account higher-than-average inflation.
As tax season approaches, the rise in the cost-of-living expenses has placed a heavy burden on millions of American families nationwide.
Although annual inflation fell to 6.5 percent last month, from its historical high in June of 9.1 percent, it is three times higher than the pre-pandemic average.
Increasing numbers of Americans are looking to make advances against their income tax refunds this season, as continuously rising prices strain household budgets and pandemic era stimulus programs come to an end.
Tax Refund Provider Raises Advance Loan Limit to Assist Households
The Santa Barbara Tax Products Group (TPG) announced two big changes last October as part of its 2023 Fast Cash Advance program.The changes would increase 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 Mar. 17.
“The Fast Cash Advance has been available Jan. 2 through Feb. 28, but in 2023, we are extending availability through Mar. 17, giving our tax professional partners more time to service clients with a tax time refund advance. Opt-in now and select the Pre-ACK advance so you can start offering Fast Cash Advance as early as Jan. 2,” said the announcement.
The San Diego-based tax services group assists clients nationwide with tax-related financial products and services, according to its website.
Many Taxpayers Await Tax Refunds as They Struggle With Inflation
A December 2022 survey by tax preparation firm H&R Block showed that 69 percent of working individuals are now “extremely concerned” about inflation, making the increase more essential.Many struggling citizens in lower-income brackets are desperate to receive their refunds sooner.
The IRS normally issues refunds in less than 21 days for taxpayers who file their returns electronically through direct deposit, but the agency will not begin accepting returns until Jan. 23.
Taxpayers will have until April 18 to submit their returns or request an extension, because the usual deadline of April 15 falls on a Saturday this year and April 17 is Emancipation Day, which is observed by workers in Washington.
Many Americans over 40, women, single mothers, and those with poor credit ratings are facing a worsening financial situation this year, primarily due to career stagnation and higher prices, said the tax preparer.
IRS Says That Refunds May Be Smaller This Year
The IRS warned that many taxpayers would receive smaller refunds this tax year because there were no stimulus payments from the federal government in 2022.“Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022.”
The American Rescue Plan stimulus package, for example, increased the child tax credit to $3,000 for each qualifying child between the ages of six and 17 and to $3,600 for each qualifying child under six for a single year in 2021.
However, for the 2022 tax year, no advance payments were issued, as the tax credit fell back to its normal amount of $2,000 per child.
Many critics of the stimulus packages blame them for worsening inflation rates due to the massive rise in government spending.
