It depends. The return of the principal for unclaimed property is generally a return of your money, and is therefore not taxable. However, any interest earned is subject to taxation.
As an Illinois nonresident, "you must file Form IL-1040 and Schedule NR if
- you earned enough taxable income from Illinois sources to have a tax liability ( i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50).
Illinois Department of Revenue - Filing Requirements
"In accordance with the United States Internal Revenue Code, Section 6041, interest earned in excess of $10.00 must be reported to the Internal Revenue Service using form 1099-INT. Because the unclaimed property paid to you by the Illinois State Treasurer’s Office earned $10.00 or more in interest, we are required by law to issue you a 1099-INT."
Illinois State Treasurer - Unclaimed Property
@Amos
@Jone465
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