According to the Illinois Department of Revenue, you may subtract your military retirement that is reported on your federal 1040 form.
This subtraction is not automatically calculated. You will have to manually enter your portion of retirement income that qualifies as a 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