Illinois allows a subtraction for military pay. You may subtract pay for:
- duty in the U.S. Armed Forces, including basic training;
- duty for serving in the U.S. Armed Forces Reserves or a National Guard unit, including ROTC;
- duty as a cadet at the U.S. Military, Air Force, and Coast Guard academies, or as a midshipman at the U.S. Naval Academy.
Beginning in tax year ending December 31, 2007, National Guard pay from any state is an allowable subtraction on the IL-1040. For tax years ending prior to December 31, 2007, only Illinois National Guard pay was an allowable subtraction.
You may not subtract:
- certain combat pay that is not included in your adjusted gross income, Line 1,
- pay you received under the Voluntary Separation Incentive;
- pay you received from the military as a civilian;
- pay you received under the Air Force Voluntary Separation Incentive Plan (VSP);
- payments you made under the Ready Reserve Mobilization Income Insurance Program; or
- pay for duty as an officer in the Public Health Service.
You must attach your Form W-2, Wage and Tax Statement, showing your military pay. For more information refer to Publication 102, Illinois Filing Requirements for Military Personnel.
