Tax season is fast approaching, and while the timeline isn’t largely expected to change for the current year, legislation aimed at addressing COVID-19 and significant changes to individuals and families’ financial situations may cause many to see major differences from their filings for 2019.

Brett Nikkel is a professional CPA with Van Maanen, Siestra, Meyer, and Nikkel, and says several components of the CARES Act and a sharp increase in unemployment in the spring means most tax filers will need to review their finances carefully to make sure they are up to speed on the correct changes.

“2020 wasn’t an normal year for anybody and I think especially on the financial side of things, there was so much upheaval for people and it affected everybody a little bit differently and I don’t know if there was anybody with completely no impact,” he says. “There were a ton of people on unemployment for the first time, there were people needing sources of income pulling from retirement, and almost everybody got the economic impact payment…I think that just means everyone probably has something that impacted them in 2020 that they have not had before.”

Nikkel reminds everyone that if they haven’t done so already to make charitable donations before December 31st, as up to $300 can be written off of taxes on top of the standard deduction in 2020 through the CARES Act as a way to help non-profits with resources taxed by the growth in need related to the pandemic. He encourages anybody who needs clarity on their end-of-year finances to contact a tax professional. Hear more about this year’s tax situation on today’s Let’s Talk Pella.