see this thread. the answer is yes the income is taxable. since Illinois starts out with federal adjusted gross income and there is no subtraction for this type of income. the money will be taxed. Regardless of whether you get a 1099 or not you must report all the money received.
https://ttlc.intuit.com/community/retirement/discussion/egg-donation-tax-reporting-roth-ira-eligibil...
