The federal government has shifted tax day to July 15, aiming to keep more funds in Americans' hands. But how does this deadline change affect you?

In case you missed it, the tax filing date for 2019 has moved from April 15 to July 15. This change gives you an additional three months to complete your federal tax return, settle any owed payments, and make IRA contributions for 2019.

It’s definitely good news, but there are some important details to consider.

Reasons for the Delay

Last Friday, Treasury Secretary Steve Mnuchin announced the extension of tax day to July 15. By this new deadline, individual filers with tax liabilities up to $1 million will need to submit their 2019 returns, their Q1 estimate for 2020, and any payments due to the IRS.

This delay is part of a broader strategy to boost the economy and help Americans access essential funds during difficult times, according to Dina Pyron, EY Tax Chat Leader. By postponing tax day, citizens can keep more money available.

If you've lost your job or can't work from home, this extension is particularly beneficial. The government aims to support financial stability for Americans right now.

If you don’t owe taxes or expect a refund, the IRS encourages you to file your return sooner rather than later, advises Pyron. They want to expedite your refund to help stimulate economic activity. If you can file early and expect a refund, do so—it’s beneficial for both your finances and the economy, says Pyron.

What If You’ve Already Paid?

If you’ve already filed and paid your taxes, you might be concerned about your payment. Unfortunately, if you sent a check through the mail, there’s no way to retrieve those funds. Your check has likely been processed.

If you filed and paid online, you may have the option to get that money back. As of Monday, the IRS stated that you can reach out to a US Treasury Financial Agent at 1-888-353-4537 or visit irs.gov/directpay to cancel your previous payment. To meet the new due date, you can mail a check in the coming weeks or set up a new wire transfer to be paid in July.

Check Your State’s Tax Deadline

Not just the federal government has changed tax day; many states have also adjusted their deadlines. For example, California has moved its tax due date to June 15. It's essential to stay updated, ask questions, and monitor your state's tax filing updates so you know when to file. Check your state tax agency for the latest information.

Although a delay may seem like a reprieve from a day most dread, it carries long-term effects. Pyron predicts that the entire tax year of 2019-2020 might face delays extending beyond July, depending on how long social distancing measures remain in place.

If you haven't filed your taxes yet and are concerned about affording it, Pyron suggests e-filing so you can adjust your payment if necessary. (See what to do if you can’t pay your tax bill.)

The takeaway? “If you can hold onto your money longer, do it. That’s a positive,” says Pyron. But if you’re due a refund, submit your returns promptly. The government wants you to have more funds available now, so make the most of the assistance they’re providing.