Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
plfoge
New Member

I have an inherited IRA from a non-spouse. Is the RMD treated as retirement income and therefore not subject to the Illinois state income tax?

 
2 Replies
Critter
Level 15

I have an inherited IRA from a non-spouse. Is the RMD treated as retirement income and therefore not subject to the Illinois state income tax?

Does Illinois Tax inherited IRA distributions?
No Illinois Tax. As of 2011, Illinois does not tax income from retirement plans. It doesn't tax withdrawals from IRAs. The state doesn't tax rollovers from a traditional IRA to a Roth IRA.

Anonymous
Not applicable

I have an inherited IRA from a non-spouse. Is the RMD treated as retirement income and therefore not subject to the Illinois state income tax?

in part - from Illinois 1040 instructions Line 5 Social Security benefits and certain retirement plans - subtraction

Enter the amount of  retirement income included in your adjusted gross income on Form IL-1040, Line 1 that you received from 

• Individual Retirement Accounts or self-employed retirement plans reported on federal Form 1040, Line 15b, or Form 1040A, Line 11b. 

the federal taxable portion of an RMD from an inherited IRA would be reported on one of these lines.  therefore, if included in line 1 of Illinois 1040 it would be eligible for subtraction

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v