Here are some things to keep in mind to make sure you can make the most out of the filing extension.
Back to BlogBanking Basics

How to Take Advantage of the Tax Filing Extension

Filing taxes doesn’t have to be a daunting or anxiety-inducing task. For starters, to give Americans some breathing room in the current global climate, the national filing deadline has been extended to July 15, which gives you an opportunity to focus on staying safe, and plenty of time to make sure that you have all of your paperwork and information in order. Even if you don’t take an “early bird” approach to tax season, there is no reason to stress if you’re still waiting to get your taxes in order. Staying calm and informed, seeking help from a professional, and understanding any changes from previous years are some of the best ways to make sure you can get through tax season in one piece.

Here are some things to keep in mind to make sure you can maximize every deduction, get your paperwork sorted without missing anything important, and make the most out of the filing extension:

Use your time wisely

Keeping yourself and loved ones safe and healthy is understandably your topmost priority right now. However, using the extra time that you have this year wisely can also work in your favor when it comes to taxes. If you have a relatively straightforward tax process and are expecting a refund, you might want to file sooner than later — the extra cash could also come handy in uncertain times. If your financial situation is less straightforward, you might want to use the next few months to get all your documents in order. Dig out and organize any receipts, make a checklist, itemize deductions, rescue missing W-2s, and get ahead of the game as much as you’re able to.

Hire a tax preparer

If you’ve had major recent life changes, are a freelancer, have multiple jobs, or just have a more complex financial circumstance than most, it might be worth turning to a professional for help. CPAs and tax preparers can help you navigate tricky tax landscapes, and work with you to get every possible deduction. While it’s often tempting to take a DIY approach to doing your taxes, contacting a tax preparer ahead of time might save you money and stress in the long run. On average, Americans paid $481 in 2018-2019 for professional help to prepare and file their taxes, according to the National Society of Accountants, so if you’re considering this route, you might want to contact someone sooner than later, as filing services tend to get more expensive the closer to the filing deadline it gets. Keep in mind that availability and resources might be affected given uncertainty surrounding COVID-19.

Be informed of changes from last year

Even if your situation remains mostly unchanged, keep in mind that every year, tax guidelines and brackets change to keep up with inflation and to reflect the policies of a particular administration. Read up on any shifts that might affect your particular tax status, and see how these impact this year’s filing. Certain deductions or credits might now apply to you, and you’ll be able to make informed decisions about opting for a standard deduction versus an itemized one.

Mind your deductions

Speaking of deductions, recent tax changes nearly doubled the standard deduction, making it a lot less pressing for most to itemize deductions to maximize their return. But keep in mind that you may still need to plug in deductible expenses — including state and local taxes, charitable donations, and mortgage interest — to figure out if you’re better off itemizing. For 2020 the standard deduction for individuals has increased to $12,400 and for those married filing jointly it increased to $24,800.

If you need more time, ask for an extension

Making sure you file your taxes properly should still be your top priority to avoid being audited or having to pay more than you actually owe. If the deadline extension doesn’t give you enough time, or you need to use the next few months to focus on yourself and your family, you can always opt for a tax extension. The IRS grants automatic six-month extensions to file your taxes every year should you need the extra time – all you have to do is submit form 4868 by the July deadline. Keep in mind that even if you ask for an extension to file, you must still pay your income tax in full by the July deadline to avoid late payment penalties.


Our mission is to empower you to live and bank your way, whatever that means to you. Here are just a few things you can expect when using N26:

  • Receive your money up to two days early with direct deposit¹
  • Set money aside for short and long-term financial goals with Spaces
  • Have access to fast and secure cashless payments with Apple Pay®²
  • Get instant notifications on all account activity so you know when you receive your refund

Open an N26 account today directly from your phone and experience secure, fast, and convenient mobile banking the world loves.

¹ Faster funding claim is based on a comparison of our policy of making funds available upon receipt of payment instruction versus the typical banking practice of posting funds at settlement. Fraud prevention restrictions may delay availability of funds with or without notice. Early availability of funds requires payor’s support of direct deposit and is subject to the timing of payor’s payment instruction.

Apple and Apple Pay are trademarks of Apple Inc. For a list of compatible Apple Pay devices, see support.apple.com/km207105.

The N26 account is offered by Axos Bank®, Member FDIC. N26 Inc. is a service provider of Axos Bank. All deposit accounts of the same ownership and/or vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and/or vesting at Axos Bank. The N26 Visa® Debit Card is issued by Axos Bank pursuant to a license by Visa U.S.A. Inc. The N26 Visa Debit Card may be used everywhere Visa debit cards are accepted.

Related posts

Maybe some of these will interest you