MarilynG1
Expert Alumni

Get your taxes done using TurboTax

Since retirement income from a Non-Qualified Deferred Compensation Plan, reported on a W-2, is not excludable in Illinois, the distribution is taxed as regular income.

 

Other states would most likely handle this type of income similarly.

 

Here's more info from Illinois Dept. of Revenue.

 

@dkm17171 

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