You will be taxed based on your state of residence. If you live in WI you will be taxed on pension amounts received while a resident of WI.
IL does not tax the retirement benefits listed below. If you are an IL resident for any part of the tax year you are allowed a subtraction on your IL state resident return for the amounts received while you were an IL resident.
No, owning a property by itself in a state typically does not show that a taxpayer has abandoned residency in another state. The preponderance of actions such as physically moving and establishing ties to the new state determine if a residency has been abandoned. Each state has it laws on the subject. Here is a link to the WI definitions of tax residency.
IL allows a subtraction for:
- a qualified employee benefit plan including 401(k) plans reported on your U.S. 1040 or 1040-SR, Line 5b. A qualified employee benefit plan is defined in IRC Sections 402 through 408. If you do not know whether your employee benefit plan is qualified, check with your employer.
- railroad retirement income reported on your U.S. 1040 or 1040-SR, Lines 5b and 6b.
- an Individual Retirement Account (IRA) (including amounts rolled over to a Roth IRA) or a self-employed retirement (SEP) plan reported on your U.S. 1040 or 1040-SR, Line 4b.
- Social Security benefits reported on your U.S. 1040 or 1040-SR, Line 6b. Do not include Social Security withheld from wages shown on your Form W-2, Wage and Tax Statement. a government retirement and government disability plan, including military plans, reported as wages on your U.S. 1040 or 1040-SR, Line 1.
- a state or local governmental deferred compensation plan paid under Internal Revenue Code (IRC) Section 457 and reported on your U.S. 1040 or 1040-SR, Line 1 or 5b.
- capital gains on employer securities received in a lump-sum distribution, to the extent the gains are due to net unrealized appreciation on the securities at the time of distribution and reported on your U.S. 1040 or 1040-SR, Line 7.
- retirement payments to retired partners reported on your U.S. 1040 or 1040-SR, Schedule 1, Line 5.
- group term life insurance premiums paid by a qualified retirement plan or government retirement plan and included as wages on your U.S. 1040 or 1040-SR, Line 1.
- interest income realized on the redemption of U.S. retirement bonds reported on your U.S. 1040 or 1040-SR, Line 2b. You may include early distributions from qualified plans and IRAs.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
