According to the Illinois Department of Revenue, you may subtract your military retirement income that is reported on your federal Form 1040.
This subtraction is not automatically calculated. You will need to manually enter your portion of retirement income that qualifies for subtraction.
Program Entry
- State Section
- Edit Illinois Return (three dots)
- 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