I got a 1099R from IL, but I live out of state, do I have to prepare a State return for IL?

[DS30 · Accepted solution]

No, you will not need to file an IL state income tax return (unless you are trying to get a refund of IL withholdings on your 1099-R in error).

The federal law prohibits any state from taxing retirement income of non-residents, even if the retirement was earned within the state. So you have no IL filing requirement on this 1099-R income.