Tax Services

Tax preparation is filing your returns based on what already happened—it’s required compliance. Tax planning is about making strategic decisions throughout the year to reduce your future tax bill.

Industry-specific tax services provide significant advantages when your business or profession has unique tax rules or opportunities. Generic tax advice misses industry-specific opportunities and may overlook compliance requirements. Industry expertise means your tax advisor recognizes situations you face and knows appropriate strategies.

For tax preparation in Chicago, we recommend at minimum an annual meeting to review your returns. For ongoing tax planning, quarterly check-ins help businesses and high earners stay on track.

Meeting frequency depends on tax complexity and planning needs. Minimum for everyone: annual tax preparation meeting to review returns and discuss next year. Recommended for businesses and high earners: quarterly tax planning meetings to review financial results, project tax liability, and adjust strategies. 

We’ll meet whenever you need us—like when you’re thinking about buying another business, changing how your company is structured, or making a big purchase. Same goes for life events like getting married, receiving an inheritance, or planning retirement.

If you have not received your refund, please visit the IRS website: https://www.irs.gov/refunds.  Typically, the IRS will issue a refund within 3 weeks from efiling your tax return and up to 6 weeks if you filed a paper tax return.  If you had owed the IRS from prior years, the IRS may use your refund to reduce prior amounts owed to them. You can also download the IRS mobile app to check the status of your refund: https://www.irs.gov/uac/irs2goapp
To locate your State of Illinois tax refund, you can use the MyTax Illinois tool here: https://mytax.illinois.gov/_/

The IRS generally recommends keeping copies of tax returns and supporting documents at least three years.  However, some documents should be kept up to seven years in case a taxpayer needs to file an amended return, or if questions arise.  Further, tax records should also be kept for at least seven years if a return claims a loss from worthless securities or a bad debt deduction.

Employment tax records should be kept at least four years after the date that the tax becomes due or paid, whichever is later.

Copies of previously filed tax returns are helpful in preparing current-year tax returns and making computations if a return needs to be amended.  Further, tax records should be kept safe and secure regardless of whether they are stored on paper or kept electronically.  In addition, tax documents not properly disposed of can land in the hands of criminals and lead to identity theft.  Once past their useful date, records should be disposed of properly. (Kiplinger Tax Letter)

The 20% tax deduction applies to self-employed people and owners of pass-throughs such as LLCs, partnerships and S corporations that pass their income to owners for tax purposes.

Many of these individuals can deduct 20% of qualified business income.  QBI is your allocable share of the income less deductions from the trade or business.  It doesn’t include capital gain, capital loss, dividends, nonbusiness interest income, reasonable compensation paid to you or guaranteed payments from partnerships.  If you’re involved in multiple businesses, you determine QBI of each one separately, and you first figure the deduction, subject to any limitations, on each business.

The deduction is “below the line.”  It won’t reduce self-employment earnings or adjusted gross income.  People needn’t itemize to take advantage of the write-off.

Two rules apply to people with higher taxable incomes – in excess of $315,000 for couples filing a joint return and $157,500 for all others.  It’s important to note that the definition of taxable income excludes the 20% deduction.
First – the break phases out for these high-incomers in certain service fields.  They include health, law, accounting, consulting, financial services, performing arts, actuarial science, athletics, brokerage services, investing or trading in securities, or any business where the principal asset is the reputation or skill of its employees.  If you’re in one of the affected fields and your taxable income exceeds $415,000 for joint returns..$207,500 for all others, the deduction is zero for that business.

Second – there is a W-2 wages-paid limitation for high-income individuals that applies even if the person isn’t engaged in a specified service business.  This caps the deduction at the basic 20% of QBI from the business or, if lower, a figure that looks at W-2 wages paid by the firm and the basis of certain assets.

There’s also a taxable income limitation that applies to all taxpayers.  The deduction can’t exceed 20% of overall taxable income, excluding the deduction, less any net capital gain.  If it does, the write-off is limited to 20% of taxable income. (via Kiplinger Tax Letter)

Log into your MyTax Illinois account – (www.mytax.illinois.gov), click on setting, then click on Manage Additional Logons, then click New Logons – you will want to allow FULL access.

If you need to pay the IRS relating to your individual FORM 1040, estimated quarterly tax payments or other payments, you can use the IRS Direct Pay link.  After you make your payment through the Direct Pay link, you will be able to track the progress.

In addition, you can download the IRS mobile: IRS2Go app and make payments via your phone – https://www.irs.gov/help/irs2goapp