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Best answer by DanaB27

If you are an Illinois resident you may subtract tax-exempt military pay (pay for duty in the armed forces, including basic training) that is in your Adjusted Gross Income (AGI). Other income may still be taxable.

Please see Illinois Filing Requirements for Military Personnel additional information.

1 reply

DanaB27Answer
June 4, 2019

If you are an Illinois resident you may subtract tax-exempt military pay (pay for duty in the armed forces, including basic training) that is in your Adjusted Gross Income (AGI). Other income may still be taxable.

Please see Illinois Filing Requirements for Military Personnel additional information.

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March 28, 2021

HELP!  I have military pay from the Guard and live in Illinois.  The W-2 is entered, and military information provided for federal return.  TurboTax transferred all the data to file my state return; however, the computer system has “determined” I am not eligible for the military pay exclusion,  which is WRONG ( and stated here).  How do I override your system to get it deducted from my Illinois return?????

April 11, 2021

My brother is having the same problem! My brother and I are both in the Illinois Air National Guard. Turbotax recognized that I do not have to pay state taxes on military income, but won't recognize it for my brother. They want him to pay!  I cannot find any differences between how our w-2's were entered.  

 

How does my brother over-ride the system?