PHILADELPHIA (KYW Newsradio) — Tax Day is not what it used to be.
Aside from filing delays, taxpayers had to adjust their spending habits during the height of the coronavirus pandemic. Now, as we try to exit the chaos of this past year, financial experts say the way we look at our finances must change again.
April 15 is usually the deadline to file your federal income tax, but the pandemic pushed that back to May 17.
Money specialists are encouraging people to use that extra time to evaluate their financial affairs for 2020 — a year that saw increased fiscal hardships.
Financial literacy expert Alfred Nixon said it’s important to pace yourself as we ease back into the world for shopping trips and dinner dates. The reopening of stores can be a temptation to buy, buy, buy, but self-discipline is a must.
“If you like trying new restaurants, set a goal to maybe try one a month,” he suggested.
For people who were hit hard by the pandemic and had to stop paying bills due to job loss or illness, look into programs that may be able to offer compensation.
“Put together a budget to start repaying some of that 2020 debt. Creditors aren’t giving out passes,” Nixon said.
For others, last year presented a financial boost. Nixon said now is the time to put it toward your financial future.
“Leverage that money. Put that money to work for you. Don’t just go out there and start spending it,” he said.
Even with the extended deadline, the IRS is urging taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can also speed up the allocation of remaining stimulus payments that taxpayers may be entitled to.
Of course, Nixon added not to be too hard on yourself. If you stumble on your financial journey, pick yourself up and keep moving forward.