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I am a 90 year old Illinois Resident with pension income and Social Security. I thought the state of Illinois did not tax pension income and TurboTax computed $1,110

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June 5, 2019
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I am a 90 year old Illinois Resident with pension income and Social Security. I thought the state of Illinois did not tax pension income and TurboTax computed $1,110 tax due. I never paid IL tax before did something change in 2016?

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Best answer by MichaelL1

You are correct. Edit the 1099R entry and look at the questions that follow in the Federal section as this is where it coming from.

Illinois does not tax distributions received from:

qualified employee benefit plans, including 401(K) plans;
an Individual Retirement Account, (IRA) or a self-employed retirement plan;
a traditional IRA that has been converted to a Roth IRA;
the redemption of U.S. retirement bonds;
state and local government deferred compensation plans;
a government retirement or government disability plan, including military plans;
railroad retirement income;
retirement payments to retired partners;
a lump sum distribution of appreciated employer securities; and
the federally taxed portion of Social Security benefits

if the income is included in your federal adjusted gross income on Form IL-1040, Line 1.

Source: http://www.revenue.state.il.us/QuestionsAndAnswers/99.htm

MichaelL1Answer

Employee

You are correct. Edit the 1099R entry and look at the questions that follow in the Federal section as this is where it coming from.

Illinois does not tax distributions received from:

qualified employee benefit plans, including 401(K) plans;
an Individual Retirement Account, (IRA) or a self-employed retirement plan;
a traditional IRA that has been converted to a Roth IRA;
the redemption of U.S. retirement bonds;
state and local government deferred compensation plans;
a government retirement or government disability plan, including military plans;
railroad retirement income;
retirement payments to retired partners;
a lump sum distribution of appreciated employer securities; and
the federally taxed portion of Social Security benefits

if the income is included in your federal adjusted gross income on Form IL-1040, Line 1.

Source: http://www.revenue.state.il.us/QuestionsAndAnswers/99.htm