Getting Your Financial Ducks In A Row Rotating Header Image

3 Comments

  1. clydewolfNo Gravatar says:

    Does Illinois exempt the retirement income regardless of age?
    I know in some states you must be age 59 1/2 before the state income tax exemption kicks in.

    1. sraskieNo Gravatar says:

      Hi Clyde,

      According to Publication 120 from the IL Department of Revenue, you may include early distributions from qualified plans and IRAs in the amount subtracted from your IL-1040, line 5. This means early withdrawals are also excluded from state income tax in IL.

      Thanks!

      sr

    2. jblankenshipNo Gravatar says:

      Yes. Amazing as it sounds, pretty much all retirement income is exempt from IL state income tax.

      No wonder we’re in so much trouble – well, the corruption thing too – but still! :)

      jb

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