What may have been projected to be a bleak season for income tax returns took a positive turn in late December, when Congress came together and passed a COVID-19 relief package that will put billions of dollars into the pockets of Americans. Solutions By Text has the tools you need to create a texting campaign that will reach your customers during this stimulus check and tax return season.
Last year, 84% of respondents to a survey that was commissioned by the National Retail Federation said they were either going to pay down debt or put their income tax refunds in their savings, up from 73% who said so a year earlier. Given the economic difficulties that many Americans suffered in 2020 as a result of the COVID-19 pandemic, it is likely that even more Americans will make the sensible and responsible choice with their income tax refunds and will not splurge on a vacation or some other big purchase like they may have done in years past.
The second stimulus checks were reportedly going to start being deposited into individuals’ bank accounts in late December and early January. That will likely provide some financial cushion to individuals to help them manage their finances during this unprecedented pandemic. With the deadline to file income tax returns still months away, other factors may play an important role in determining what people do with any refunds they receive. Distribution and deployment of a vaccine for COVID-19 may allow a sense of normalcy to start returning and may make people more likely to spend an income tax refund, especially if it looks like lives may go back to their pre-pandemic patterns.
The average income tax refund this year was $2,535, an 11% drop from the average income tax refund a year earlier, according to data provided by the Internal Revenue Service. Income tax refunds peaked in 2017 at $2,899 per return, but have decreased in each of the two years since.
For many people, the income tax refund they receive is the largest check they receive each year. That can create a lot of opportunities to help pay down debts, bolster savings, and spend some money on items they might not normally be able to afford.
Individuals will be able to start filing their tax returns sometime in mid-January — an exact date will be announced by the IRS soon. Given the difficult financial position that many people may find themselves in, they may look to their tax returns as something that can’t wait until April to be filed. Companies looking to reach consumers in order to obtain a piece of their income tax refunds need to be proactive and start planning their campaigns now.
The best place to start is with Solutions By Text’s powerhouse of SMS marketing tools.
- Reach previous customers and new customers with the All-in Opt-In tool.
- Face-to-face customer service might be limited in today’s circumstances, but that doesn’t mean your customer satisfaction should be diminished. Communicate directly with your customers with the Two-Way Texting tool.
- Get a detailed report of specific customer activity with the Smart Click tool. Create, customize and track shortened URLs directly inside the SBT software.