In the middle of this health crisis, you are probably wondering if you should submit your tax return now or later. Amid the COVID-19 pandemic, according to IRS.com, we have until July 15. No matter what your decision is, there are smart money moves to make now! With all of this uncertainty and confusion about the economy, a lot of U.S citizens are facing tough decisions. Many of these choices revolve around money. Anytime there is an economic crisis, the black community is hit the hardest with financial hardships. That is why I want to advise on how to stay above water during this horrible time.
Smart Money Moves to Make Now:File Your Tax Return Now or Later?
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File your tax return now or later?
Get your taxes done without filing
Should we Take advantage of the opportunity to file our taxes now or wait until later? This decision depends on whether you are getting a refund or if you owe taxes. Make sure you have thoroughly done your taxes so that you will know whether you owe or not. Remember, you can get them done without filing, just need to make sure you know your status so that you can make the right decisions going forward.
Why you should file your tax return later
If you owe taxes to the Internal Revenue Service (IRS), it is a smart decision to take advantage of the opportunity to file later. By submitting then, you will be able to talk to the IRS, set up payments in installments, and not have the pressure of having to pay a large amount of money at once.
You can also get your refund once the pandemic is over. A great benefit to post-coronavirus is having a large sum of money to enjoy luxuries that you were unable to partake in due to quarantine.
Why you should file your tax return now
If there is an adverse change to your finances due to a lay-off or a decrease in wage, your tax return can be a useful source of income. Apply those funds to bills that you need to catch up on or to get ahead. I currently have a small monthly bill for my aligners from SmileDirect, and I was able to pay more than the monthly cost due to my recent return. This made me very happy because I would like to pay off those aligners as soon as possible. Allowing your money to apply to bills or necessary expenses will keep you and your family afloat without falling behind. Once this health crisis is over, try to make sure your finances are not a heavy burden for you or your loved ones.
Use your tax return for investments
Making smart investments is a benefit to filing early. As of now, Delta Airline Stocks are a little over twenty dollars. I, along with others, have faith that the economy will rise again, and those low stocks will be worth more in the future. What companies are you patronizing the most? Look at the price of their shares and consider investing for self-pay.
Your tax return can go towards your dream vacation
Last, and certainly not least, file now and book a holiday. I am hopeful that this virus does not profoundly affect everyone so that we can go on and live our best lives. Delta and Southwest Airlines have flights to Montego Bay, Jamaica, for under $500. That is a perfect destination for you and your honey-do. Flights to Orlando, Florida in July are $43. Now is a great time to book that trip to Disney World; your kids keep asking to go on.
Smart money moves to make now
Many of us get super excited about the tax filing season because you are looking forward to getting a huge check in the mail or your direct deposit. We use our refunds to catch up on bills, make splurges, or to save. However, amid this horrible health and monetary crisis, I encourage you to spend your money wisely.
Stack your coins in an emergency fund
If your finances have not been affected, you should start aggressively building up your emergency fund. Usually, the minimum amount you should have in an emergency fund depends on how much your monthly expenses are for six months. This pandemic has shown us that your life and your financial situation could change in one day. So, I suggest that you should go beyond the six months of expenses and have a years’ worth of expenses in your emergency fund.
Now is a good time for families to educate their children on the importance of saving for a rainy day. If you have generation z and millennials in your household, they need to know firsthand the importance of keeping and having an emergency fund set aside.
Finally, my last topic of making smart money decisions is not popular with everyone, but it is imperative. During this pandemic, take a moment to go through life insurance policies. If you have an inheritance to pass on, you need to make sure you have a will in place. This pandemic has shown us that you could get sick and die very quickly. You do not want to leave your affairs out of order, and your inheritance lands in the wrong hands. This is very important for blended families. Unfortunately, if things are not specified in a will, a spouse and bonus children can benefit from your inheritance before your birth children will. While we all have this downtime, it is essential to start thinking about things that are inevitable.
Are you filing your taxes early or later?
Timely post. You covered terrific tips on when to file taxes and what to do with any refund or stimulus checks. I especially like paying down bills that may have been high or you were unable to handle. Also, stashing money away for the unexpected is a good idea.