topic Thank you in Retirement tax questions

Does state of illinois tax ira required minimum distributions

turbowag — Thu, 06 Jun 2019 05:26:28 GMT

Part of my question was whether Turbo Tax recognized this...

Jim-R — Thu, 06 Jun 2019 05:26:29 GMT

Part of my question was whether Turbo Tax recognized this issue. In other words, the federal government is taxing me, but will Turbo Tax recognize this is not taxable income in Illinois. I was bothered by the answer you cited which said " for some reason, kept IRA RMDs in taxable income. So I'll now file a paper return." If this is true it makes me question the reliability of turbo tax which up until now I have found to be reliable.

If you entered your 1099-R correctly on your federal retu...

TomD8 — Thu, 06 Jun 2019 05:26:31 GMT

If you entered your 1099-R correctly on your federal return, your RMD will carry to your Illinois Form IL-1040 as part of your Total Income (line 4), but not as part of your Illinois base income (line 9). You won't be taxed on your RMD. TurboTax handles this correctly, as long as you enter your information correctly.

Thank you

Jim-R — Thu, 06 Jun 2019 05:26:32 GMT

Thank you

No. Illinois is among the states that exempt all types of...

DS30 — Thu, 06 Jun 2019 05:26:34 GMT

No. Illinois is among the states that exempt all types of retirement income from state income taxes

Thanks. I had begun Illinois' online IL-1040 tax form wh...

turbowag — Thu, 06 Jun 2019 05:26:35 GMT

Thanks. I had begun Illinois' online IL-1040 tax form which, for some reason, kept IRA RMDs in taxable income. So I'll now file a paper return.