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.
To make this manual entry, please go to:
- State Section
- Edit Illinois Return
- Subtractions from Income
- Enter the amount of your federally taxed retirement income in the corresponding box