Helpful Information
Gather Your Documents Early
Begin by collecting all necessary records—W-2s, 1099s, investment statements, mortgage statements, and energy credits—well before tax season. Early preparation helps ensure accurate tax filing and prevents last-minute surprises in your tax return.
Leverage Retirement Account Contributions
Contributions to Traditional IRAs, 401(k)s, and Roth IRAs can lower your taxable income and grow long-term wealth. This is one of the most effective tax planning strategies available in 2025, whether you’re an employee, freelancer, or small business owner. Chicagoland CPAs+2Chicagoland CPAs+2
Take Advantage of Updated Tax Brackets
The IRS has adjusted 2025 tax brackets upward for inflation, which may reduce your tax liability. For instance, the top marginal rate of 37% now applies only to incomes over $751,600 for married couples and $626,350 for individuals. These bracket updates can influence your decisions on retirement withdrawals and estimated payments. The Wall Street Journal
Maximize Federal Deductions & Credits
The One Big Beautiful Bill (OBBB) brings important benefits for 2025 tax filers, including permanent lower tax brackets, higher estate and gift tax exemptions, enhanced deductions for seniors, and bigger standard deductions. Temporary provisions—like expanded SALT deductions and deductions on tips, overtime, and car loan interest—provide additional tax-saving opportunities. The Sun+7Kiplinger+7Kiplinger+7
Track Self-Employment and Business Expenses Carefully
Self-employed individuals should diligently log all white-collar expenses—home office, equipment, software subscriptions, professional fees—and travel or freelance costs. Many of these can be fully deducted, reducing your taxable income significantly. ICPAPorte Brown
Update Withholdings and Plan for Quarterly Taxes
Mid-year life changes—like marriage, divorce, a pay raise, or side gig income—often warrant revisiting your tax withholdings and estimated payments. Use official IRS tools like the Withholding Estimator to minimize underpayment penalties. Kiplinger+2irs.gov+2
Note Changes in Illinois State Tax Law
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Don’t Ignore Free Tax Assistance Resources
If your income is limited, Chicago offers free tax prep support through programs like Ladder Up and TaxPrepChicago.org. These IRS-certified services are a valuable way to get accurate help without the expense. chicago.gov+1
Helpful Information
Summary Table: 2025 Tax Tips at a Glance
Tip | What to Do |
Document Organization | Collect all income, expense, and deduction records early |
Retirement Contributions | Maximize IRA/401(k) contributions to lower taxable income |
New Tax Brackets | Leverage inflation-adjusted thresholds to your advantage |
OBBB Provisions | Tap into temporary and permanent deductions and credits |
Self-Employed Deductions | Track all business-related expenses diligently |
Withholding Updates | Reassess your withholdings and quarterly payments after life changes |
IL Flat Tax | Account for Illinois’s flat 4.95% income tax rate |
Free Assistance | Use certified programs if you qualify for free tax help |
