TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Solved

Illinois income Deferred Compensation Deduction

Forum|Forum|6 months ago
February 11, 2026
1 reply
33 views

Where do I deduct my deferred compensation from my income in my Illinois return?

Best answer by RogerD1

If you made contributions to a pretax deferred compensation plan, those are reported on your W-2 and are automatically not taxed as they are deducted from your the box 1 income, which should be equal to the income reported in box 16 of the W-2 for your Illinois wages.

If you received a 1099-R for distributions, enter that as normal in TurboTax. TurboTax will automatically remove that income from your Illinois taxable income on line 5 or your IL-1040 return. If using TurboTax download version, you can view your IL-1040 form by clicking on Forms at the top right, then look for your IL-1040 return in the left column and click on it to double check that the subtraction has been made.

Level 6

If you made contributions to a pretax deferred compensation plan, those are reported on your W-2 and are automatically not taxed as they are deducted from your the box 1 income, which should be equal to the income reported in box 16 of the W-2 for your Illinois wages.

If you received a 1099-R for distributions, enter that as normal in TurboTax. TurboTax will automatically remove that income from your Illinois taxable income on line 5 or your IL-1040 return. If using TurboTax download version, you can view your IL-1040 form by clicking on Forms at the top right, then look for your IL-1040 return in the left column and click on it to double check that the subtraction has been made.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"