☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 12, 2024 3:44:32 PM

Illinois IMRF Death Lump Sum to Heirs

Received a 1099-R from IMRF for my brothers pension made out to his estate. I was able to enter info into TurboTax Business and it produced a K1 form for the benefices. When I enter it in Home and Business at the Federal level it shows that I owe taxes on the money which I get. IMRF money is not pre taxed going into the pension plan. The problem I don't get is at the state level. The state form wants to look at the Federal AGI with includes the pension money that needs to be taxed at the Federal level.  Because of this it wants to also tax as income at the state level. IMRF money is tax exempt in Illinois. Does that rule pass on to the benefices?

0 1 123
1 Replies
Level 15
Feb 12, 2024 7:27:20 PM

Your IMRF pension payments are not subject to Illinois state income tax.

so on the Illinois k-1s  line 37 there should be a subtraction for the beneficiary's share of the IMRF pension/retirement fund payments.  This is probably not automatic from federal entries.