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You don't need to report the disability income on your Illinois state return if it was not included in the state wages reported on your W-2 form. Per this from the Illinois Department of Revenue Instructions to Schedule M , your employer excludes the income from taxation on your Illinois return by not reporting it on your W-2 form.

It does prevent efiling.   Spent 1.5 hrs on the phone with support, and a technical "support expert" in the background, in what was clearly a goose chase. Despite others having documented that they'd also spent time with support, my agent said there was no indication of any prior issues to TT support. Doesn't give you much faith.    After a very long time just being directed to every form imaginable, I suggested that maybe the wording on one interview question was misleading, and adjusted a response. It finally cleared the error without reversing the non-taxable 1099-Q! BUT, after going through the Update TT process before submitting the efile, it appeared again. I have deleted everything related to my dependent student and re-entered. Nothing. TurboTax needs to refund every person experiencing this blocking error. Not to mention the massive wasted time and delayed refunds. And not for nothin' - I don't have a whole lot of faith in TT overall accuracy at this point. Very unhappy. As in, filing a Consumer Complaint with the State unhappy.

Thank you. I followed the instructions and got on the phone with another expert who is looking into this and helping. Also, looking at our prior year returns together, we found an error in 2021 that carried over to 2025. We'll have a follow up phone conversation to discuss what information is necessary to correct this situation. I also decided to upgrade to Expert Full Service this year. I will file an extension so that no one is rushed. Thanks to the executive team for stepping in to ensure necessary assistance is available as well.

@4056265882 wrote: I purchased my used car in 2023 ... was allowed a Section 179 deduction of $10492.    The 2 year comparison is showing $0 for depreciation for 2024 even though I was allowed $2290.      Let me guess - vehicle under 6000 pounds and you did NOT elect OUT of Bonus depreciation, right?   If so, that is probably right.  It is due to a bizarre rule in the tax code, and when you combine Bonus Depreciation and Section 179.   The only reason why I say "probably", rather than with certainty, is that it appears that your business percentage increased from 2023 to 2024.  I would need to look up the exact rules to see how it plays out if the business percentage increases. 

@jacquie12 @BrooklynJeff    I am not convinced by this answer either. For example, I was helping somebody who had very little income in 2023 and because of that paid $0 federal and $0 NYS tax. They still received the inflation check in 2025. So in no way is it a refund of 2023 NYS income taxes because they didn't pay any.  The "refund" is extra money from NYS they received in 2025 and is therefore Federally taxable. Standard vs itemized deduction wouldn't matter in this case.    So while the refund is related to 2023 income, it is not a refund of taxes paid for that year. Therefore, the conservative approach would be to add it to your Federal income and then subtract it out of NYS via an adjustment (everyone agrees it is NOT taxable for NYS).