Is unemployment income taxable?

Unemployment compensation included in your federal adjusted gross income is taxable to Illinois if

  • you earned it while you were an Illinois resident or
  • you received it from the Illinois Department of Employment Security as a nonresident.

Note: Railroad Unemployment is the only type of unemployment income that is not taxed by Illinois. Refer to Schedule M, Line 37 InstructionsDo not claim any other type of unemployment income on Schedule M, Line 37.


If you have additional inquiries, you may submit them to the Questions, Comments, or Request form.