Federally taxed Social Security benefits and certain retirement plans are not taxable to IL. You may subtract most retirement income if it is included in Form IL-1040, Line 1. This includes income from:
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Qualified employee benefit plans (including railroad retirement and 401(K) plans)
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Individual Retirement Accounts or self-employed retirement plans
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Social Security and railroad retirement benefits
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Government retirement and government disability plans and group term life insurance premiums paid by a qualified retirement plan
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State or local government deferred compensation plans
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Certain Capital gains on employer securities
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Certain Retirement payments made directly to retired partners
NOTE: Your beneficiary share of payments from certain retirement plans and retirement payments to retired partners reported on Schedule K-1-T should not be included on Line 5. For more information, see the Schedule M instructions. For more information, see Publication 120.
NOTE: Your distributive share of federally tax-exempt interest and dividend income received from a partnership, S corporation, trust, or estate is added back on Schedule M, Line 2.