aronmcd
New Member

Are dividends from an ESOP taxable as investment income, or retirement income, on my Illinois return?

The 1099-DIV reports the dividends in Box 1a.  The Instructions on the 1099-DIV say that "The amount shown may be dividends a corporation paid directly to you as a participant in an employee stock ownership plan (ESOP).  Report it as a dividend on your Form 1040 but treat it as a plan distribution, not as investment income, for any other purpose."