Solid Tax Services
Tax Preparation & Tax Debt Resolutions
Merrionette Park, IL  Ashley@SolidTaxServices.com 773-619-9572
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Latest Tax Law Updates

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Tariffs

•  Tariffs are a tax on foreign imported goods paid to the domestic government.

• 51% of the United States federal government revenue came from income tax in 2024.  U.S. Treasury Fiscal Data

• Federal income tax was enacted in 1913 by the U.S. Congress after the U.S. Civil War.​

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Social Security Tax Law Changes 2025

• The Social Security Fairness Act was signed into law January 2025. This bill repeals the Windfall Elimination Provision & the Government Pension Offset restoring full pensions to public service retirees who have been subject to the Windfall Elimination Provision (WEP) & Government Pension Offset (GPO). Beneficiaries will see an average monthly increase in income of $360.

• Social Security retirement benefits will increase by 2.5% in tax year 2025, so on average social security benefits will increase by about $50 per month for beneficiaries.

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Tax Compliance 

• Tax compliance means filing all required back, past due tax returns & filing any required future tax returns by the due date (usually April 15 - 18th of each year) & paying all taxes due by the due date.  This is an essential component of any tax debt resolution program to get in good standing & to stay in good standing; therefore, not defaulting your tax debt resolution agreement once established.  Note:  Owing $1 & being 1 day late in paying your tax liability may default your previous tax debt resolution agreement & put you at risk for active, enforced collections like wage garnishments, bank levies, & property seizures.   

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Estimated Tax Payments 

• Estimated tax payments are quarterly tax payments made by income earners in the U. S.   Tip:  It is recommended to make these payments monthly and in smaller amounts... this is more manageable for most taxpayers.  

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401K, Individual Retirement Accounts, & Pension 

• Any investment before income tax, will be post taxed as income when distributed in the range of about 20% - 30%... in addition, if it is an early distribution before full retirement age then an additional 10% penalty applies... totaling 30% - 40% in income tax.  Be prepared to pay this tax or be subject to additional accrued penalties and interest on these amounts.  Tip:  Post income tax investment accounts like Roth IRA's & self-investor/brokered accounts carry much less tax liability when you receive distributions.

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Accounting, Bookkeeping, & Cash Flow Tips

• Consider learning and using a spread sheet like Microsoft Excel to keep track of your personal incomes and expenses and update it once a week/month.  This is an excellent way to budget!

• All 1099s are payments received from companies and government agencies.  These are payments that are reported to the IRS as an expense (write off), so file them on your taxes as income.

• All 1098s are expenses paid, such as:  1098- mortgage interest, 1098E- student loan interest, & 1098T- tuition statement.  These are your expenses to deduct (write off).

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Identity Theft Protection

• Beware of email/phishing scams this coming tax season and year.  The IRS will never request personal information via an unsolicited email.  Report suspicious emails to Phishing@IRS.gov
• Check your credit report!  You get one free credit report a year that is compiled from the three major credit bureaus:  Experian, Equifax, & Transunion!  Take advantage of it!