Money Management

It’s not too late to file your 2019 tax return, if you’ve forgotten. Find out what happens to your refund if you file after July 17, 2023. 

If you have yet to file your 2019 federal tax return, now is the time to act if you anticipate getting a refund. That’s because the final filing deadline is approaching for those wishing to claim a tax refund. If you wish to collect the cash the government owes you, you’ll want to file your 2019 tax return by July 17, 2023. Here’s what you need to know so you don’t miss out on extra cash.

Filing deadlines for tax refunds do exist

Sometimes life happens, and you can’t meet the yearly federal tax filing deadline. According to the IRS, taxpayers have a three-year window from the original filing date to claim a tax refund. After that point, unclaimed refunds become the property of the United States Treasury. You should keep this timeline in mind if you don’t want to waste your hard-earned money.

Claim your 2019 federal tax refund by July 17

Since federal tax returns for the 2019 tax year were due in the early days of the COVID-19 pandemic, the IRS extended the filing deadline from April to July 2020. Because of this, the three-year timeline for 2019 returns is in the summer of 2023 instead of the spring.

Taxpayers that have yet to file their 2019 federal tax return must file their return and claim any refunds owed by July 17, 2023. Otherwise, they’ll lose the money they’re due to get back from the government. If you have yet to file and expect a return, now is the time to act.

Many taxpayers have yet to file their taxes. The IRS estimates that nearly $1.5 billion in refunds remain unclaimed, and more than 1.4 million individuals are due money. If you’ve been meaning to boost your savings account balance, filing your tax return could allow you to do that.

Another reason to file your taxes soon

There’s another reason you may want to act quickly to file your 2019 federal tax return. Many low- to moderate-income workers qualify for the Earned Income Tax Credit (EITC). For the 2019 tax year, the EITC credit is worth up to $6,557. You don’t want to miss out if your household qualifies for this credit. A sizable tax refund could allow you to build a solid emergency fund and in today’s costly world, having emergency savings can give you greater peace of mind.

Do this if you need to file your 2019 tax return

If you have yet to file your return and claim a refund, the good news is it’s not too late. Since some tax-filing software providers allow taxpayers to file their returns for up to three years, you can use one of the best tax software solutions to file your taxes. Many taxpayers find that using software simplifies the filing process and makes handling tax matters less stressful.

If you need extra help or have questions about your 2019 taxes, you may want to contact an accountant. But keep the July 17 timeline in mind so you have time to gather your documents before the deadline passes. Check out our personal finance resources for more valuable tips.

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In June, we pay special homage to the LGBTQIA+ community. Read on to learn how to best position yourself for homeownership as a member of this community. 

It’s a difficult time to buy a home, between higher mortgage rates (currently, the average 30-year fixed-rate mortgage rate is 6.57%, per Freddie Mac) and fewer home listings to choose from. And if you’re a member of the LGBTQIA+ community, the challenges you face as a buyer could be even greater.

Statistics about LGBTQIA+ Americans’ financial health gathered and interpreted by The Ascent show that queer Americans face higher rates of poverty, and roughly 60% of queer men and women own homes compared to about 70% of straight men and women. And a study of mortgage loan data conducted by researchers at Iowa State University found that same-sex couples were 73% more likely to be rejected for a mortgage loan application than different-sex couples.

None of this is good news, but there are ways to make homeownership possible for you, even if you don’t fit the more traditional mold of American home buyers. Focus on making the following moves to give yourself the best possible chance to buy your dream house.

1. Work on your credit

Getting a mortgage and buying a home begins with getting your finances in order, and the best place to start is with a closer look at your credit profile. After all, mortgage lenders will be focusing on this when deciding whether to approve your application, so why not beat them to the punch?

You can access your credit reports (you’ll have three, one from each of the major credit bureaus) for free every week for the rest of the year. Go through the reports and look for errors. If you find account data that isn’t yours or closed accounts that should’ve fallen off your report by now, you can request that these bits be removed by the credit bureaus, which should boost your credit score.

2. Pay down debt

Another way to both improve your credit score and become a strong mortgage borrower is to pay down your existing debt. Lenders will consider your debt-to-income ratio when deciding whether to approve your home loan application because it’s in their best interest to ensure you can pay back the money you borrow. And for your own peace of mind (and credit score), it’s best to approach homeownership with a solid handle on your expenses.

Remember, the costs of homeownership don’t end with your mortgage loan (and the expenses that are often rolled into it, like property taxes and homeowners insurance). They also include less-predictable expenses like maintenance and home repairs. Not having to pay as much toward other debts will make it easier to save money for these items so you can avoid future debt.

3. Save, save, save

Speaking of saving money, you’ll generally be required to make a down payment when you buy a home. Depending on the type of mortgage you opt for, you might not need to put down very much — for example, FHA loans only require a 3.5% down payment when the borrower has a credit score of at least 580. But making a higher down payment will work in your favor, and if you can put down at least 20%, you’ll avoid having to pay for mortgage insurance, saving you money on your mortgage payments every month.

It’s a good idea to have some additional savings in reserve. This way, a lender can see that if you lose your job or suffer some other financial setback, you can still make mortgage payments until you get back on your feet. So don’t forget to consider this when thinking about your costs to buy a house.

4. Get pre-approved

After your finances are shored up, shop around for mortgage lenders and secure a mortgage pre-approval. This process involves lenders looking at your finances and deciding how much money you’re qualified to borrow for a home. A pre-approval letter is a way to show home sellers and their agents you’re a qualified borrower and aren’t just wasting their time.

When picking the right mortgage lender, it’s best to get as much information on your options as you can. You might choose to work with a big national lender, an online-only lender, or even your hometown credit union. Ask queer friends, family members, and community advocates for recommendations to mitigate the chances you’ll be discriminated against. And if you speak to a mortgage loan officer along the way and something feels off, buy with a different lender instead.

5. Target areas where you can feel at home

If you’re not already focusing on a particular location, do some research to find the right spot where you can be comfortable and live your truth. It’s a sad fact that many areas with the most robust legal protections for LGBTQIA+ Americans often boast some of the highest real estate prices. In 2020, Zillow found that the cost to buy a home in such areas was 63% more than in places with few or no legal protections.

My own personal tip for this is to find less costly towns and cities in states with more robust anti-discrimination laws in place. For example, you may not be able to afford to buy in New York City, but New York State is home to other lovely (and less expensive) cities.

6. Find a real estate agent you trust

A real estate agent is your best friend and advocate when it comes to finding the right house, so approach finding one strategically when you’re ready to look for homes. Again, talk to members of your community and get the names of agents who are allies and put their clients first. Another great resource is the LGBTQ+ Real Estate Alliance. This organization offers a real estate agent search tool to find queer-friendly professionals to help you buy.

Every American hoping to buy a home in the near future is facing an uphill climb, and if you’re part of the LGBTQIA+ rainbow, yours is likely even steeper. The above tips can help you get in the right financial shape and find the right crew to help you purchase a home and achieve your own part of the American dream.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Target and Zillow Group. The Motley Fool has a disclosure policy.

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A loan can help you save money by consolidating your credit card debt. Find out what will happen next after paying off credit cards with a loan. 

If you’ve been struggling with credit card debt, you’ve probably wondered about the best way to pay it off. One of the most popular options is taking out a loan, and then using it to pay off your credit cards.

This method is called debt consolidation. It has a few key benefits, with the biggest being that loans generally have much lower interest rates than credit cards. Most consumers consolidate debt with personal loans, but you could also do it with other types of loans, such as a home equity loan.

Since debt consolidation isn’t something most people do often, they’re often unsure what to expect. Here’s exactly what happens when you pay off your credit cards with a loan and how it could benefit you.

You only need to make payments on the loan going forward

Debt consolidation gets you down to one monthly payment. That’s good from a convenience perspective, and it’s especially helpful if making payments every month to multiple credit cards is hard to manage for you.

Once you’ve received your loan, you use those funds to pay the full balance on all your credit cards. As long as you’re able to take out a large-enough loan, you can bring all your credit card balances down to $0. If you were paying off five credit cards, and you pay off all their balances with a loan, then you only need to make the loan payment going forward.

Note that it’s still a good idea to check in on your credit card accounts at least once a month. Even after paying off the full balances, there may have been some pending charges that hadn’t gone through yet and that you’ll need to pay off. You should also review your credit card accounts regularly in case of fraudulent charges.

You have a fixed payment amount and term

One of the reasons debt consolidation loans work so well is that they provide a structured plan to pay off debt. Your loan will have the same payment amount due every month and a fixed term length, such as three or five years.

Credit cards are much more flexible than loans. Even though that has its benefits, it can also make paying off credit card debt harder, for a few reasons:

You’re only required to pay a small minimum amount per month, normally about 1% to 2% of the card’s balance. If you make minimum payments, you won’t make much progress on your debt.You can continue using your credit cards while in debt, charging up to the credit limit. Some people get stuck in neutral with their credit card debt because they keep spending money on their cards.

With a loan, you don’t have either of these issues. The payment amount will be enough to have your loan paid off at the end of the term. You could also pay it off more quickly, as long as the loan doesn’t have a prepayment penalty.

Your credit cards are paid off, but be careful not to end up in the same predicament

As explained above, paying off your credit cards with a loan will bring their balances down to $0. That’s good news, as you won’t be getting charged expensive credit card interest anymore. You’ll only pay interest on the loan, which will most likely have a lower interest rate.

Don’t start carrying balances on your credit cards again. Unfortunately, some people fall into the same habits as before. They see that their credit cards are paid off, and they decide they can afford to make some new purchases.

Remember that you haven’t paid off your debt. You’ve only moved it from your credit cards to a loan. You still owe the same amount as before, and if you rack up debt on your credit cards again, you’ll owe even more. Debt consolidation is a great opportunity to get control of your debt. Make the most of it by focusing on paying off your loan and not carrying credit card balances any more.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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