Illinois Gives Income Tax Breaks to the Retired

While Illinois income taxes ranked high among the states in general, Illinois does offer income tax breaks for those who are retired.

Illinois does not assess state income tax on Social Security benefits. As a side note Alabama, Hawaii, Louisiana, Massachusetts, Michigan, Mississippi, New York, Pennsylvania all exclude Social Security benefits from their state taxes.

Illinois does not assess state income tax on military pensions, in-state pensions, and many private pensions.

In particular, Qualified Employee Benefit Plans including 401 K plans, IRA plans, railroad retirement benefits, state and local deferred compensation plans are exempt from Illinois State income tax.

So, you may ask: is Illinois a good place to retire? For the present it seems to be, but the answer depends upon how long you want to stay retired in Illinois.

Illinois has many unfunded government pensions. This means that the State of Illinois figured out more ways to receive income taxes from Illinois residents. So, the future is unknown.

For questions about your tax status as a retired Illinois resident, contact a knowledgeable Illinois attorney at 630-920-8855.

Recent Blog Posts

Categories

Archives

Free Initial Consultations

phone 630-920-8855
address15 North Lincoln Street, Hinsdale, IL 60521
phone 331-588-6611
address21 North 4th Street, Geneva, IL 60134
Our firm handles family law and personal injury matters for clients in Chicago and throughout the western suburbs including DuPage County, Will County, Kane County, Cook County and the cities of Aurora, Bloomingdale, Bolingbrook, Burr Ridge, Carol Stream, Darien, Downers Grove, Elmhurst, Glen Ellyn, Hinsdale, Joliet, Kendall County, Lombard, Naperville, Oak Park, Oak Brook, Oakbrook Terrace, Clarendon Hills, Oswego, Park Ridge, Roselle, St. Charles, Geneva, Villa Park, Warrenville, Wheaton, Western Springs, LaGrange, Winfield, Woodridge and Yorkville.

© 2019 Law Office of Martoccio & Martoccio 15 North Lincoln Street, Hinsdale, IL 60521 630-920-8855

OVC Lawyer Marketing

Share Your Experience

X