Illinois DOR Publishes Updated Guidance on Retirement Income Subtractions

The Illinois Department of Revenue (DOR) published Publication 120, providing guidance to retirees about what retirement income they may subtract from their federal adjusted gross income when completing individual income tax returns. The publication outlines various types of qualified retirement income that can be subtracted, including distributions from qualified employee benefit plans, IRAs, Social Security benefits, and government retirement plans, while also specifying the documentation taxpayers must attach to their returns to support these subtractions and clarifying which federally taxed income is not eligible for subtraction on Illinois returns. [Ill. Dep’t of Revenue, Pub-120, Retirement Income, 12/01/25]

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