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

[aronmcd]

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."  

[maglib]

After you input the 1099Div, the next screen says "tell us If any of these Uncommon Situations Apply to you" Choose the one "This is an ESOP distribution" TT should handle appropriate reporting.  

[maglib]

dividends paid and your employer is telling you they are to be treated as distributions!!!! QUOTE "Report it as a dividend on your Form 1040 but treat it as a plan distribution, not as investment income, for any other purpose."  What do you think a distribution is but a distribution of shares is how they are telling you to treat it.