turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Illinois Non Resident teacher retiree state tax

I am a retired Illinois teacher living as a full year resident of Missouri.

My only income from Illinois is my teacher retirement pension.

I file a Missouri income tax return and pay taxes on that Illinois pension.

Am I required to file an Illinois tax return?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

Illinois Non Resident teacher retiree state tax

In Illinois retirement distributions aren't taxable even if you live in Illinois.

**********

In addition, a SCOTUS decision provided states can't tax non-residents on retirement distributions 

**********************

The Pension Income Tax Limits Act (PITLA), enacted after December 31, 1995, prohibits states from imposing income taxes on certain retirement income for individuals who are not residents or legally domiciled in that state. In other words, if you receive retirement distributions from a state retirement plan and you are a non-resident at the time of receipt, those distributions may not be subject to that state's income tax

***********************

don't even bother to file an Illinois return unless you have other Illinois source income 

View solution in original post

2 Replies
TomK2023
Expert Alumni

Illinois Non Resident teacher retiree state tax

Nonresidents must file an Illinois income tax return and Schedule NR if: the nonresident earned enough taxable income from state sources to have tax liability.

 

In most cases, if you live in state that has income tax, you will get a credit on your tax return for the state you live in for part or all of the tax that you pay to the other state. 
 

Once you've determined that you need to file a nonresident state return, the first thing you want to do is make sure you've filled out the Personal Info section correctly:

  1. With your return open, select My Info  in the menu.
  2. On the Personal info summary screen, scroll down to Other State Income, and select Edit.
  3. At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
  4. Select Continue to return to your Personal info summary.

After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.

 

Tip: To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

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

Illinois Non Resident teacher retiree state tax

In Illinois retirement distributions aren't taxable even if you live in Illinois.

**********

In addition, a SCOTUS decision provided states can't tax non-residents on retirement distributions 

**********************

The Pension Income Tax Limits Act (PITLA), enacted after December 31, 1995, prohibits states from imposing income taxes on certain retirement income for individuals who are not residents or legally domiciled in that state. In other words, if you receive retirement distributions from a state retirement plan and you are a non-resident at the time of receipt, those distributions may not be subject to that state's income tax

***********************

don't even bother to file an Illinois return unless you have other Illinois source income 

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question