Thank you, dmertz. I had intended to proceed as you suggest, but thought the community might suggest another approach or add insight. I did call the payer and as an explanation they stated they do not calculate taxable amount for anyone in Illinois, nor do they deduct tax withholding for Illinois. I assume this is because pension income is not taxable in Illinois. To your point, I do not see how that has any bearing on the entries in Box 2. I tried to check prior years to see if they have treated Box 2 this way in the past. Unfortunately I had to attach Copy 2 to the state return so I cannot check it. Once again, thank you for taking the time to reply to my question. If you are on the east coast, Happy Snow Day.
