What other income is NOT allowed as a subtraction on my individual income tax return?
You may not subtract anything that is not listed in Publication 101, Income Exempt From Tax.
For example, you may not subtract:
- out-of-state income. However, if you are filing as a resident, you may be allowed to take a credit against your Illinois Income Tax for income tax you paid to another state. See the instructions for Form IL-1040, Line 16 and Schedule CR, Credit for Tax Paid to Other States.
If you are filing as a nonresident, you should file a completed Schedule NR. You may not subtract your out-of-state income on your Form IL-1040.
If you are filing as a part-year resident, you should file a completed Schedule NR, and you may also be allowed to file Schedule CR if the income you earned while an Illinois resident is also being taxed by another state.
- unemployment compensation. Unemployment compensation included in your federal adjusted gross income is fully taxable to Illinois, unless it is unemployment income earned from Railroad Unemployment.
- gambling losses. Illinois does not allow a deduction for gambling losses.
- your federal itemized deductions from U.S. 1040 Schedule A, Itemized Deductions.
- any wages reported on your federal return. If you believe the wages reported on the Form W-2, Wage and Tax Statement, you received from your employer are incorrect, you must obtain a corrected Form W-2 or a statement from your employer stating that your Form W-2 was incorrect.
