@MuskyMickey53 wrote:
Issue with TurboTax Illinois Tax Return
- 1099-R code 7D Retirement Income is not Illinois State Taxable
- Fix is to check the IRA/SEP/Simple Box.
- This fix will tax your annuity retirement distribution at the Federal level and not tax at the Illinois State level.
- This has been my fix for both 2018 & 2019 tax years
Code 7D is a non-qualified annuity and is NOT an IRA. Checking the IRA box will cause the interview to ask different questions and place what might be an incorrect amount on the wrong line (line 4a/b instead of the proper line 4c/4d) on the 1040 form guaranteeing an IRS audit letter in about a year. (NOTE: for 2018 all 1099-R account types went on line 4a/b, on 2019 1040 forms they are on *different* lines to make it easier for the IRS to detect improper reporting such as this). Do not check the IRA box. The 1099-R box 2a and the interview questions determines the taxable amount for code 4D.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
