I withdrew 401k under the Cares Act and am splitting the taxes among the 3 years for Federal. For state (Illinois), do I also input 1/3 of the withdrawal, or can I enter all 100% of it. I can't find the answer anywhere. Turbo tax defaults to the 1/3, wondering if I should leave that or put all 100% as CARES act is a federal tax break, not state. Thank you.
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Illinois calculates taxable income by starting federal Adjusted Gross Income (AGI). There is no addition to the Federal AGI for Corona Virus related distributions from retirement plans listed in the Illinois instructions for 2020. Moreover, I am not aware of any states that have stated they will not recognize Coronavirus -related distributions in gross income at the same time and in the same amounts as they are included in federal gross income. I would leave it 1/3 for your Illinois state tax return.
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