A number of tax law changes were enacted in 2020 to enable individuals and businesses to get through the pandemic. These included changes made by the CARES Act and the Consolidated Appropriations Act, 2021. Many of the changes were temporary, which means that individuals and businesses now must use old tax rules or revised rules in figuring taxes for 2021. Here is a rundown of some changes for 2021 income tax returns that result from COVID-19-related laws. Because many of the rules triggered by the pandemic were temporary, the IRS only provided informal guidance on these rules via notices and FAQs.

Individual Taxpayers

Individuals adjusting to life during the pandemic may have received various benefits from the government or their employers, or relief from other sources. Be sure to note changes in rules from 2020 to 2021 and the actions that should be taken.