The COVID-19 pandemic has impacted every aspect of daily life, and taxes are no different. This year's tax filing season starts Friday—two weeks later than usual—and will bring some changes to the way taxes are filed.

"What's crazy is the tax code did change, I guess quite a bit this year, but really what happened was our lives changed so much that even the parts of the tax code that didn't change, we are just experiencing them differently because we are experiencing life differently. We're working differently," said Nathan Rigney, principal research tax analyst at H&R Block.

Here's what you need to know before preparing your taxes. 

Rigney said one of the things to consider is whether your unemployment benefits meet the filing threshold: $12,400 for single filers and $24,800 for joint filers. 

"Because unemployment benefits were so significant this year, it's likely that your income did reach that threshold," he said.

Those who collected unemployment benefits should receive a 1099-D form that will include the dollar amount taxable on the federal return. If that amount and any other income meet the threshold, you will need to file taxes. California is one of a few states that does not tax unemployment benefits.

If your unemployment benefits do not meet the threshold, Rigney said there may be some circumstances where you may still want to file – such as if you did not receive all the stimulus payment you were entitled to during the year. For example, if you had a child last year or your income dropped during the year, the IRS wouldn't know that until you file your taxes. The stimulus checks were based on what you made in 2020, but the IRS used the 2019 returns as an estimate. If these scenarios are the case, then a recovery rebate credit is your chance to get your money.

In California, filers who use an Individual Taxpayer Identification Number will be eligible for the state's Earned Income Tax Credit and the Young Child Tax Credit, totaling up to $4,000. ITIN filers will still not qualify for the federal EITC credit.

Another change includes the charitable giving deduction, which will allow those who donated to charity last year to claim a $300 deduction even if they don't itemize. 

For those who received stimulus checks, the income is not taxable at the federal level. You might recall that the first check was for up to $1,200 for eligible adults and $500 per dependent, and the second check was up to $600. Although some states are taxing the income, these payments are not subject to California income tax. 

Although many are working from home due to the pandemic, they will not be able to claim home office expenses in their federal taxes. Those deductions are for self-employed or independent contractors, commonly known as gig workers.  

If a person is working from home and has an office solely for work, Rigney said California is one of a few states that allow you to deduct expenses in your state return. 

Those who took on gig work to stay afloat will be able to claim expenses, including home office, vehicle and driving, internet and phone, health insurance, and more, depending on what they do on both the federal and state return.

Rigney said filers must meet a couple of rules to get the deduction. The filer must use the home office space exclusively for work and on a regular basis. That means that a dining table does not qualify, he said. He also emphasized that filers would have to allocate utilities based on the square footage of their work exclusive office space, adding that any equipment bought for that space is fully deductible.

If you received a 1099-G form showing unemployment benefits were dispersed to you, but you didn't receive the money, Rigney suggests reaching out to the Employment Development Department for a corrected form.

"You don't know when they'll be able to issue that, and you're going to have to go through some effort to get the corrected 1099-G," he said, adding you should still file taxes.

The IRS has said filers should not include the fraudulent income in their federal return, Rigney said. As for the state return, he said they're still waiting on guidance.

Several free tax preparation programs exist that can assist those who are eligible. This year, some will offer COVID-friendly filing options, including contactless drop-off, virtual, and online filing. These are just a few:

Volunteer Income Tax Assistance and Tax Counseling for the Elderly

For more than 50 years, the IRS's VITA program has offered free tax return preparation assistance to those who make $57,000 or less, persons with disabilities, and limited English-speaking taxpayers. The TCE program focuses on helping those who are 60 years of age and older and specializes in pensions and retirement-related issues that affect the elderly. 

Note that while the IRS manages the program, IRS-certified volunteers are the ones who help people with tax returns. To find the nearest location and check whether an appointment is required, visit their website. 

Free Tax Prep L.A.

On January 27, Mayor Eric Garcetti launched the Free Tax Prep L.A. 2021 campaign to make working-class families aware that they may qualify to get their taxes prepared for free. Those who made less than $57,000 in 2020 are eligible. 

"Year in and year out, local families leave hundreds of millions of dollars on the table — refunds they are entitled to receive and credits that can make the difference between security and despair for our struggling neighbors," Garcetti said in a news release. "Every dollar recovered can help hard-hit Angelenos pay the bills, cover the rent, and put food on the table — and with COVID-19 wreaking havoc on so many in our city, there has never been a more critical time to provide these free tax prep services to our most vulnerable households, regardless of immigration status." 

Help is available in English, Spanish, Chinese, Persian, Armenian, and Korean. The program is also offering stimulus check assistance to those who have not yet received payment. Appointments are required.

OC Free Tax Prep 

This program has been helping Orange County taxpayers since it started in 2005. Those whose household income was less than $60,000 in 2020 qualify for free tax return preparation assistance. Their drop-off filing option requires an appointment and the approximate completion time is seven days. To find a drop-off location or learn more about their other file options, visit their site. 

For those who are unemployed selecting to withhold taxes is a must, Rigney said. As for gig workers, he said staying on top of paying quarterly taxes to avoid a penalty at the end of the year is essential.