Need Illinois Tax Expert for Inherited IRA distribution

[Stacy93]

I received an inherited IRA distribution this year.  I received a K-1 for the distribution which increased my AGI on the federal side and for which I paid the taxes.

Illinois does not tax distributions for inherited IRA's and I am trying to determine how to record the deduction of my AGI that transferred over to my Illinois return.  Turbo Tax does NOT walk me through how to do this.  All it asked is if I received a K-1t, which I did not, but is not needed based on the research I did.  I believe I need to file a Schedule M, which Turbo Tax does not prompt me to do.

Please help.

Thank you

[Mike9241]

what line of the K-1T and did you receive an Illinois K-1T, because the subtraction comes from line 37 of the Illinois K-1T

[Stacy93]

No, I did not receive a K-1T.  Who is responsible for filling it out?  I received the K-1 from an out of state CPA who is the CPA for my brother, both of whom are in Virginia.  My brother is the Fiduciary for the Trust for which the inherited IRA sits.  The CPA is not fully versed in Illinois tax laws.  I did ask him for a K-1T but he replied that I needed to find a tax professional in Illinois.  

[NCperson]

@Stacy93 While Illinois does not tax inherited IRA distributions, it is possible Illinois takes the position that since the IRA was owned by the estate and not you, the distribution from the estate is indeed taxable.  The money you received was not from a IRA you inherited.  The estate inherited the IRA.   See the dilemma? 

You may want to ask someone locally for advise. 

[Stacy93]

Thank you.  The IRA was not part of the trust until we moved into the trust after the passing of our mother, thinking it was the best way to distribute yearly distributions to all siblings.  

Looks like, regardless, I need to seek the advise of someone local.

Thank you!