Does Illinois collect taxes on retirement annuities. It never has before

mcsparren — Thu, 06 Jun 2019 08:59:25 GMT

No, IL does not tax Social Security benefits and certain...

HelenaC — Thu, 06 Jun 2019 08:59:27 GMT

No, IL does not tax Social Security benefits and certain retirement plans.

Per the IL-1040 instructions for Line #5 http://tax.illinois.gov/TaxForms/IncmCurrentYear/Individual/IL-1040-Instr.pdf, deduct federally taxable social security benefits and certain retirement plans that are entered :

Enter the amount of federally taxed:

Social Security and retirement income included in your adjusted gross income on Form IL-1040, Line 1 that you received from qualified employee benefit plans (including railroad retirement and 401(K) plans) reported on federal Form 1040, Line 16b, or Form 1040A, Line 12b.
Individual Retirement Accounts or self-employed retirement plans reported on federal Form 1040, Line 15b, or Form 1040A, Line 11b.
Social Security and railroad retirement benefits reported on federal Form 1040, Line 20b, or Form 1040A, Line 14b.
government retirement and government disability plans and group term life insurance premiums paid by a qualified retirement plan reported as wages on your federal Form 1040 or 1040A, Line 7.
state or local government deferred compensation plans reported on federal Form 1040, Line 7 or 16b, or Form 1040A, Line 7 or 12b.
certain capital gains on employer securities reported on federal Form 1040, Line 13.
certain retirement payments made directly to retired partners reported on federal Form 1040, Line 17.

See the screenshot below.