National Guard pay took out IL taxes

Forum|Forum|7 years ago
June 5, 2019
1 reply
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I work for the National Guard full time (Production Controller), January to August I worked for 1 dept and they did not take out IL state taxes out. I got promoted and moved to another department and received another w2 from them, and they took out IL state taxes. How do I handle this on my IL state tax return?

TurboTax Premier Windows

DanielV01

Level 15

It depends. Click on the following IL website link to find additional information on this subject: Is my military pay taxable on my individual income tax return?

On that site, you will see that if you are a member of the National Guard (regardless of the state), your National Guard pay is exempted from income for Illinois. Thus, if you are an active-duty member of the guard, you need to mark your W-2 as such in TurboTax so that the income is exempted from Illinois tax (which would create a refund for the amount of IL tax withheld on your second w-2).

However, if either of the two jobs was a civilian job, then the income is included for Illinois tax purposes. (This may be why Illinois tax was withheld from one position but not the other). If you are unsure as to whether one of your positions was a civilian position or not, contact your National Guard processor for clarification.

But, to the extent you know that your W-2 is active duty income, please note this screenshot on how to mark it for TurboTax as such:

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