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?
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In Illinois retirement distributions aren't taxable even if you live in Illinois.
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In addition, a SCOTUS decision provided states can't tax non-residents on retirement distributions
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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
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don't even bother to file an Illinois return unless you have other Illinois source income
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:
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.
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
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