Illinois DOR Issues GIL on Canadian Pension Income Tax Treatment

The Illinois Department of Revenue (DOR) issued a General Information Letter (GIL) regarding the treatment of Canadian pension income. The GIL states that Canadian Old Age Security and Canada Pension Plan payments may be treated analogously to U.S. Social Security benefits under the U.S.-Canada tax treaty and federal law, potentially qualifying for the Illinois subtraction modification for retirement income. However, a private Canadian pension would not qualify for the subtraction under Illinois law. [Il. Dep’t of Revenue, 04/01/26]

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