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.
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