Tax Help for Individuals and Families

Most households do not need a complicated return, but they do have many moving parts: wages, children, a home, student loans, a side job, a move, a marriage or a divorce. Getting individual and family taxes right means choosing the correct filing status, claiming the credits you qualify for, and keeping the paperwork that proves it. This page covers what matters most for families in Naperville, Aurora and the rest of Chicagoland, and for households elsewhere that we serve remotely.

Filing status and dependents come first

Almost every other number on your return depends on two decisions: your filing status and who you claim as a dependent. Married couples usually file jointly, though a separate return is sometimes better in unusual situations such as large medical bills or a spouse's debt problem. Head of household can lower the tax of an unmarried parent who pays more than half the cost of keeping up a home. Our filing status guide walks through the tests.

Dependents are where families get into trouble. If divorced or separated parents both claim the same child, the IRS systems will flag it and one return will be questioned. The custody paperwork and the dependency rules decide the outcome, not who would benefit more. See the child tax credit and dependents guide.

Credits worth checking each year

Credits reduce tax directly, so they matter more than most deductions. For 2025 the main ones are:

• Child Tax Credit. Up to $2,200 per qualifying child under 17 for 2025, with up to $1,700 refundable if you have at least $2,500 of earned income. You, your spouse if filing jointly, and each child need a Social Security number valid for U.S. employment. The credit shrinks above $200,000 of income ($400,000 joint). A separate $500 credit covers other dependents and can be claimed with an ITIN.
• Earned Income Credit. For 2025 the maximum is $649 with no children, $4,328 with one, $7,152 with two and $8,046 with three or more, and investment income above $11,950 disqualifies you. The IRS checks this refundable credit closely, so keep documents. See improper credit claims and bans.
• Child and dependent care. Care costs count up to $3,000 for one person and $6,000 for two or more. Beginning in 2026 the top credit percentage rises from 35 to 50 percent.
• Education benefits. The American Opportunity and Lifetime Learning credits, the student loan interest deduction and 529 plans each have income limits. See the education credits and 529 guide.

Deductions: standard or itemized

Most families take the standard deduction, which for 2026 rises to $16,100 (single), $32,200 (joint) or $24,150 (head of household). Itemizing makes sense when mortgage interest, charity, medical costs above the AGI floor and state and local taxes add up to more. The cap on state and local taxes is $40,000 for 2025, which helps Illinois homeowners with high property tax, but it shrinks for high earners. Compare both ways each year with our standard vs. itemized guide.

Newer deductions for 2025 through 2028 are available whether or not you itemize: up to $10,000 of interest on a new, U.S.-assembled, personal-use vehicle loan, qualified tips, the premium portion of overtime, and an extra deduction for people 65 and older. Each has income phase-outs and reporting rules and is claimed on Schedule 1-A. For 2026, people who do not itemize can also deduct up to $1,000 ($2,000 joint) of cash gifts to charity.

Illinois items

For 2025 Illinois taxes income at a flat 4.95 percent and allows a $2,850 exemption per person, which disappears if federal adjusted gross income is above $250,000 ($500,000 joint). Illinois also offers a child tax credit equal to 40 percent of its earned income credit, a property tax credit, and a subtraction for most Social Security and qualified retirement income. If you moved into or out of Illinois during the year, you may need Schedule NR.

Records and common mistakes

Keep Social Security numbers for everyone in the household, W-2s and 1099s, mortgage and property tax statements, child care provider names and tax IDs, charity receipts, and health insurance forms. Our guide on how long to keep tax records explains retention periods. If you buy marketplace insurance, note that beginning with tax year 2026 the limits on repaying excess advance premium credits no longer apply, so a mid-year income change matters more than before.

Common mistakes:

• Claiming a child who lives mostly with the other parent without the release form.
• Leaving out a 1099 for interest, a side job or a payment app, then receiving a mismatch notice. See how to read an IRS notice.
• Letting withholding drift after a raise, marriage or new child. The Form W-4 guide explains how to adjust.
• Waiting too long to file when a refund is owed. See late filing when you are owed a refund.

How we can help

We prepare federal and Illinois individual returns, review withholding and estimated payments, and help families plan around events such as a new child, a home purchase or a job change. Learn more about individual tax preparation and tax planning, or see our Naperville office. If an IRS letter has arrived, IRS representation is available.

This is general information, not advice for your situation.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.