Can I deduct income identified on a 1099R form from cashing in a whole life insurance policy on my Form IL-1040?

Only if the insured is terminally ill and redeemed the policy to receive an accelerated payment may the income be subtracted on Form IL-1040, Line 5. Otherwise, the income is taxable and may not be subtracted on Form IL-1040.

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