“States can be aggressive about auditing
taxpayers who claim they’re no longer residents,”
Barlow said. “Requirements vary by state, but
they’re looking to see if taxpayers gave up most
of their ties to the old state and have closer ties
to the new state instead, such as still owning or
leasing a residence, where you are registered to
vote, and the state of your driver’s license, just to
name a few.”
CHARITY
One bright spot is a new, temporary deduction
for charitable donations.
As part of the CARES Act, taxpayers can
deduct up to $300 for cash donations given
to charity even if they choose to take the
standard deduction, rather than itemizing their
deductions. The IRS estimates that about nine in
10 taxpayers now take the standard deduction.
So, if someone makes a cash donation before
the end of the year they can get a deduction of
up to $300 when they file. A deduction lowers
both adjusted gross income and taxable income
for the taxpayer.
TIMING
The IRS has yet to announce when the tax
filing season will open; it typically begins in
early January.
The agency has brought some of its employees
to the office. But its face-to-face operations
with taxpayers will remain extremely limited.
The IRS continues to urge taxpayers to file
their taxes online and use other online tools
whenever possible.