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Social Security benefits in Illinois

Varies

Is Social Security Taxed in Illinois?

Short answer: No. Illinois subtracts the full federally taxed portion of Social Security benefits, along with most retirement income, on Form IL-1040. The subtraction covers only U.S. Social Security; foreign social security is taxable.

Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by 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.