Retirement income in Illinois
Varies
Does Illinois Tax Retirement Income?
Short answer: No. Distributions from qualified employer plans, 401(k)s, IRAs, and government pensions are subtracted from Illinois income and not taxed.
Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
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.
Retirement income in Illinois
Varies
Individuals / Personal Taxes
No. Distributions from qualified employer plans, 401(k)s, IRAs, and government pensions are subtracted from Illinois income and not taxed.
Business justification
No. Distributions from qualified employer plans, 401(k)s, IRAs, and government pensions are subtracted from Illinois income and not taxed. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions