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June 1, 2019
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Illinois state tax

  • June 1, 2019
  • 1 reply
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My wife is on a pension with the Chicago Teachers retirement fund. There are no state taxes deducted on her 1099-R. Is this income taxable?

Best answer by BillM223

No, a teachers pension is not taxable in Illinois.

Go in to the Illinois state interview in TurboTax. Proceed until you see a screen with the heading of "Pension Distributions". Note the comment: "Illinois allows a deduction for pension distributions received from a government retirement plan (such as State Employees Retirement System, State Universities Retirement System, Teachers Retirement System[emphasis mine], Illinois Municipal Retirement System), a qualified employee benefit plan including 401(k) and 403(b), or a state or local government deferred compensation plan (457)."

If your annuity was reported on a 1099-R as not an IRA and if you indicated in the 1099-R interview that this was a qualified plan, then the amount from your annuity will probably already be here. If so, do not change anything.

But if the amount is not there, you can add it to the box in the "Pension Distributions" screen.

1 reply

BillM223Answer
June 1, 2019

No, a teachers pension is not taxable in Illinois.

Go in to the Illinois state interview in TurboTax. Proceed until you see a screen with the heading of "Pension Distributions". Note the comment: "Illinois allows a deduction for pension distributions received from a government retirement plan (such as State Employees Retirement System, State Universities Retirement System, Teachers Retirement System[emphasis mine], Illinois Municipal Retirement System), a qualified employee benefit plan including 401(k) and 403(b), or a state or local government deferred compensation plan (457)."

If your annuity was reported on a 1099-R as not an IRA and if you indicated in the 1099-R interview that this was a qualified plan, then the amount from your annuity will probably already be here. If so, do not change anything.

But if the amount is not there, you can add it to the box in the "Pension Distributions" screen.

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