IL taxes on disability

My husband is disabled and have 1099R from his company, TT consider it taxable for IL. Is that correct? Distribution code is 3 (disable). He is younger than the required retirement age. My understanding is that IL doesn't tax retirement, but is not what TT did. The SSA-1099-SM is considered not taxable for IL per TT. Please let me know if you have any advise. Thank you

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