DianeW777
Employee Tax Expert

Retirement tax questions

Another way to handle it that should resolve the issue is to go back to the W-2 and change the State amount (Box 16) to the amount that should be taxed by Illinois (IL).  The key is to report the accurate taxable wage to IL. 

 

As indicated by our awesome Tax Expert @DaveF1006 the disability benefits are not subject to Illinois state income taxes

 

Please update if you need further assistance.

 

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