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What other income is not allowed as a subtraction on my individual income tax return?

You may not subtract anything that is not listed on Schedule M or Publication 101.

For example, you may not subtract:

  • Unemployment compensation - Unemployment compensation included in your federal adjusted gross income, except railroad unemployment, is fully taxable to Illinois. If you had Illinois withholding taken from your unemployment compensation, you will enter the total amount withheld on the appropriate line of Form IL-1040 along with Illinois withholding from any W-2 and 1099 forms you may have.
  • Gambling losses - Illinois does not allow a deduction for gambling losses.
  • Your federal itemized deductions from federal Form 1040 Schedule A, Itemized Deductions
  • Any wages reported on your federal return - If you believe the wages reported on the Form W-2, Wage and Tax Statement, you received from your employer are incorrect, you must obtain a corrected Form W-2 or a statement from your employer, on company letterhead, stating that your Form W-2 was incorrect. We will not accept a letter from you or your tax preparer.
  • Income received from Social Security benefits and retirement plans (including Illinois Teacher's Retirement) - Eligible retirement income should be subtracted on IL-1040, Line 5.
  • Out-of-state income - However, if you are filing as a resident or a part-year resident, you may be allowed to take a credit against Illinois Income Tax for income tax you paid to another state. See the instructions for Form IL-1040, Line 15, and Schedule CR, Credit for Tax Paid to Other States.

If you have additional inquiries, you may submit them on the Questions, Comments, or Requests form.