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Social Security benefits and certain retirement plans

seniors investigating tax questions

You may subtract the amount of federally taxed Social Security and retirement income included in your adjusted gross income on Form IL-1040, Line 1 that you received from

  • qualified employee benefit plans (including railroad retirement and 401(K) plans) reported on federal Form 1040 or 1040-SR, Line 4d.
  • Individual Retirement Accounts or self-employed retirement plans reported on federal Form 1040or 1040-SR, Line 4b.
  • Social Security and railroad retirement benefits reported on federal Form 1040or 1040-SR, Line 5b.
  • government retirement and government disability plans and group term life insurance premiums paid by a qualified retirement plan reported as wages on your federal Form 1040 or 1040-SR, Line 1.
  • state or local government deferred compensation plans reported on federal Form 1040 or 1040-SR, Line 1 and 4d.
  • certain capital gains on employer securities reported on federal Form 1040 or 1040-SR, Line 6.
  • certain retirement payments made directly to retired partners reported on federal Form 1040 or 1040-SR, Schedule 1, Line 5.

NOTE: Your beneficiary share of payments from certain retirement plans and retirement payments to retired partners reported on Schedule K-1-T should not be included on Line 5. For more information, see the Schedule M instructions.

For more information, see Publication 120.