Does Illinois tax my pension, social security, or retirement income on my individual income tax return?
Illinois does not tax distributions received from:
- qualified employee benefit plans, including 401(K) plans;
- an Individual Retirement Account, (IRA) or a self-employed retirement plan;
- a traditional IRA that has been converted to a Roth IRA;
- the redemption of U.S. retirement bonds;
- state and local government deferred compensation plans;
- a government retirement or government disability plan, including military plans;
- railroad retirement income;
- retirement payments to retired partners;
- a lump sum distribution of appreciated employer securities; and
- the federally taxed portion of Social Security benefits.
For more information see Publication 120, Retirement Income, or the Form IL-1040 Instructions for Line 5.
