Because of COVID-19, this year’s tax deadline got delayed three months to July 15. But even with the extra time, it appears many people are still waiting until the last minute to file — including many taxpayers who will be receiving refunds.
The IRS says that as of July 3, it processed 95 million refunds, down from 105 million by the same time last year.
The tax agency says Americans are getting back an average $2,762 this year, slightly more than during the 2019 tax season.
With the economy struggling and unemployment still high, managing a refund wisely is more important than ever. But many Americans aren’t making the best use of their windfalls.
See the seven worst ways people are using their tax refunds.
1. Letting it rot in checking accounts
Setting a tax refund aside in an emergency fund is smart. Many financial