Military retirement pay in Illinois
Varies
Does Illinois Tax Military Retirement Pay?
Short answer: No. Illinois fully exempts military retired pay, along with most retirement income, from state income tax. Other retirement income: Distributions from qualified employer plans, 401(k)s, IRAs, and government pensions are subtracted from Illinois income and not taxed.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Illinois
Varies
Individuals / Personal Taxes
No. Illinois fully exempts military retired pay, along with most retirement income, from state income tax. Other retirement income: Distributions from qualified employer plans, 401(k)s, IRAs, and government pensions are subtracted from Illinois income and not taxed.
Business justification
No. Illinois fully exempts military retired pay, along with most retirement income, from state income tax. Other retirement income: Distributions from qualified employer plans, 401(k)s, IRAs, and government pensions are subtracted from Illinois income and not taxed. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions