Retirement tax questions

You should enter your form 1099-R that reports the distribution in the federal section of TurboTax, in the Wages and Income section, then Retirement Plans and Social Security, then IRA, 401(k), Pension Plans (1099-R). The taxable amount should be listed in box box 2(a) and the code in box 7 should designate it as being a disability pension (code D.)

When you prepare your state tax return for Illinois, you will see a section that says Here's the income that Illinois handles differently. In that section there is an option to work on your retirement income, you need to work through that section to insure that your pension income isn't taxable on your Illinois tax return.