TurboTax starts IL State tax by transferring 1040 line 11 as state taxable income which also includes the entire Roth conversion. Then it deducts only the TAXABLE portion of Roth conversion, leaving the nontaxable portion in. So I will have to pay state tax on that nontaxable Roth conversion. My understanding is that State of IL does not tax retirement account distribution at all, regardless if it is federal taxable or not. Does anyone else run into similar issue?
I called TurboTax help and didn't get any help at all. In fact the rep just hung up even before she understood what my question is, let alone providing any help. I am posting here in hope that TurboTax will see my question and help
