Survey Shows Americans Rely on Tax Refunds for Holiday Spending Relief

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Jackson Hewitt Survey Insights

Many Americans indicated that an advance on their tax refunds could mitigate the financial strain of holiday spending, according to a Jackson Hewitt Tax Service survey. Fifty percent of respondents stated they believe such an advance would relieve the burden of paying for holiday shopping. Additionally, 40% of respondents expect to receive the same refund amount this year as they did last year. The survey also found that an overwhelming 77% of people did not know they could obtain an advance on their tax refund.

This year has been hard on our wallets, and we recognize the pressure many hardworking Americans feel during this time of year. — Kim Hudson, chief marketing officer at Jackson Hewitt Tax Services

IRS Tax Filing Season and Refund Timelines

The Internal Revenue Service announced January 23 as the official start to the 2023 tax filing season. Tax filers can begin submitting their 2022 returns and expect refunds approximately 2-3 weeks after filing opens. Refunds involving Earned Income Credit (EIC) or certain other credits will be released mid-February, even for filings on opening day. The IRS has introduced several changes ending pandemic-era tax credits, which could reduce advance amounts for many. Last year's average tax refund was $3,039, an increase of over $200 from the prior year mainly due to COVID-19 related credits. Affected credits include the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and Child and Dependent Care Credit. The federal tax deadline for returns and payments is April 18, 2023.

Factors Affecting Refund Processing and Tips for Faster Receipt

Although the IRS typically issues most refunds in under 21 days, circumstances such as potential errors, missing information, identity theft suspicions, or fraud can require additional review and delay processing. Tax filers should file once they receive their W-2 from their employer and gather all required documentation and receipts beforehand to expedite the process. Direct deposit remains the fastest method for electronic filings, eliminating risks of lost, stolen, or undeliverable checks.