Illinois allows you to subtract your retirement income that is taxed on your federal return if it is received from:
- Qualified employee benefit plans (IRAs, SEPs)
- Government retirement and government disability plans and group life insurance premiums paid by a qualified retirement plan.
- State or local government deferred compensation plans
- Certain capital gains on employer securities
- Certain retirement payments made directly to retired partners
- Social Security and railroad retirement benefits
To make this manual entry, go to:
- State Section
- Subtractions from Income
- Amount of federally taxed retirement income on line 1 of your IL return that qualifies as a subtraction on line 5 of your IL return
See also Is my military pension/retirement income taxable to Illinois?