The past year was unique in a number of ways that will impact the rapidly approaching filing season. Continued implementation of the Tax Cuts and Jobs Act, plus the pandemic-response legislation such as the CARES Act, and working from home will add complicating factors for tax professionals and taxpayers alike.
There are a number of actions that taxpayers may have taken this year in response to COVID-19 that could affect their individual tax situation, according to Dina Pyron, global TaxChat leader at Big Four firm EY. These include:
- Triggering a new, possibly multi-state filing requirement due to residency changes;
- Taking a retirement plan loan or distribution;
- Receiving unemployment benefits;
- Postponing charitable contributions;
- Having a self-employment loss; and,
- Receiving a stimulus payment.