Received a 1099-R from IMRF for my brothers pension made out to his estate. I was able to enter info into TurboTax Business and it produced a K1 form for the benefices. When I enter it in Home and Business at the Federal level it shows that I owe taxes on the money which I get. IMRF money is not pre taxed going into the pension plan. The problem I don't get is at the state level. The state form wants to look at the Federal AGI with includes the pension money that needs to be taxed at the Federal level. Because of this it wants to also tax as income at the state level. IMRF money is tax exempt in Illinois. Does that rule pass on to the benefices?
