Advance tax refund latest news
Advance tax refund latest news: Let us tell you that more Americans could seek advance payments on their tax refunds for income this tax year as the rising cost of living strains budgets and government stimulus programs wind down.
Advance tax refund latest news:
Santa Barbara Tax Products Group expanded the size of its loans for refunds on advance to $7,000, up from $6000, and extended the loan’s availability by two weeks until March. 17. The company handles 20% of the refunds that are issued by the IRS. The firm processes 20% of refunds issued by the IRS and handles refund loans for certain accountants and tax preparers firms.
Reasons for the increase in an advance tax refund
The increase comes as the results of a survey conducted by tax preparation company H&R Block showed 69% of employees were “extremely concerned” about the rising cost of living. People over 40 or women, single moms, and people with credit scores ranging from fair to low are the most likely to have had an increase in their financial burden which is why they have fewer work hours or raises and the increase in prices being the primary reason.
Consequences of advance tax refund
Certain taxpayers cannot wait to receive their refunds. The IRS is aiming to issue the majority of refunds in less than 21 days for those filing electronically. They can also select direct deposit. However, the IRS will not start accepting tax returns until January. 23.
“One big change this year is that most temporary COVID-19 relief measures and programs have expired,” states H&R Block Chief Tax Officer Kathy Pickering. “These include the Recovery Rebate Credit, the expanded Earned Income Tax Credit, Child Tax Credit, and dependent care credit for individuals.”
American Rescue Plan increased the tax credit for children
The President’s American Rescue Plan increased the tax credit for children to $3,000 for each child that is eligible between the ages of 6-17 and up to $3,600 for every child who is a qualifying age of six but only until 2021. The law also allowed the possibility of early payments of up to 50% of the estimated amount.
For the tax year of 2022, the tax year ended with no advance payments, and the credit was reduced to $2,000 per child. Many Tax refund loans are offered with no financing charges or loan charges. However, you could pay a tax preparation fee or software charge, and/or an electronic tax filing fee.
