Amid the COVID-19 outbreak, the Treasury Department and Internal Revenue Service (IRS) announced that the tax deadline is being extended from April 15, 2020 to July 15, 2020.1 This allows three additional months for taxpayers to file and pay their taxes, interest free and penalty free. While the extension brings a bit of good news and some relief to taxpayers, it may also not be a time sit around and wait.
Consider this–a tax refund can be the largest paycheck of the year for many with 72% of taxpayers receiving a refund close to $3,000 last year.2 Given more time to file may sound nice, but some money in your pockets during a critical time such as this can be extremely beneficial.
During social distancing and lockdowns, your tax refund can be used to:
- Purchase essentials such as groceries and medication
- Cover bills if you’re on unpaid leave of absence or recently unemployed
- Pay down any high-interest debt
- Boost your emergency fund
- Contribute to your retirement accounts
No matter the speed bumps and potholes that may arise in life, we want you to remain confident throughout your financial journey. Your refund is money that you’ve worked hard to earn. Now, let it work hard for you. Let us help make sure it pays off, give us a call and we’ll help you plan its use wisely.
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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.
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[1] https://www.irs.gov/newsroom/tax-day-now-july-15-treasury-irs-extend-filing-deadline-and-federal-tax-payments-regardless-of-amount-owed
[2] https://blog.turbotax.intuit.com/tax-refunds/what-to-expect-when-youre-expectinga-tax-refund-20980