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Illinois Filing Requirements for
Military Personnel
For tax years 2008 and earlier, if you file a joint federal income tax
return, you are required to file a joint Illinois income tax return if both For tax years ending prior to December 31, 2001, you may
you and your spouse are Illinois residents or nonresidents. If one of only subtract compensation paid for active duty.
you is a resident and the other is not, you may elect to file separate For tax years ending prior to December 31, 2007, you may
Illinois returns or to file a joint return on which you are both treated subtract National Guard pay only if you were in the Illinois National
as Illinois residents (or as part-year residents for the same period). Guard.
For all tax years, you must file separate Illinois returns if you filed You may also subtract all income of a person whose federal income
separate federal returns. tax on that income is forgiven because the person died in a combat
zone or due to wounds, disease, or injury incurred in a combat zone.
Residents, part-year residents, and nonresidents, do not
Must I file an Illinois return? subtract military pay or other income that is not included in your AGI
on Form IL-1040, Line 1.
If you are an Illinois resident or part-year resident, you are
required to file an Illinois return if
you are required to file a federal return, or
What military pay may I not subtract?
your Illinois base income is greater than your Illinois exemption
allowance. You may not subtract
If you are a nonresident, you must file an Illinois return if you military income (such as combat pay) that you excluded from your
have earned enough taxable income from Illinois sources to have AGI on Form IL-1040, Line 1;
a tax liability (i.e., your Illinois base income from Schedule NR, pay you received under the Voluntary Separation Incentive;
Nonresident and Part-Year Resident Computation of Illinois Tax, is pay you received from the military as a civilian;
greater than your Illinois exemption allowance from Schedule NR).
payments you made under the Ready Reserve
Mobilization Income Insurance Program; or
pay for duty as an officer in the Public Health Service.
How do I report my military pay?
If you are
an Illinois resident, you must file Form IL-1040, Individual Which form should I use to subtract military pay?
Income Tax Return. Your military pay will generally be
included in your federal adjusted gross income (AGI) on For tax years
Form IL-1040, Line 1. 2008 and after, you may subtract military pay on Schedule M,
a part-year resident, you must file Form IL-1040 and Other Additions and Subtractions for Individuals.
Schedule NR. Your military pay will generally be included in 2007 and earlier, see the return instructions for the year you are
the Illinois portion of your AGI on Schedule NR. filing.
On Schedule NR, Step 3, Column B, you must include
all income earned while a resident regardless of whether If you are a part-year resident or nonresident, you
may subtract tax-exempt military pay on Schedule NR, Step 4,
such income is earned from Illinois sources, and Column B if it is included as income in Step 3, Column B.
all income earned from Illinois sources while a
nonresident. If you are an active member of the National Guard
a nonresident, you are not required to report military pay and qualify as a Dual Status Technician, attach a copy of your
to Illinois. See “Must I file an Illinois return?” for filing most recently issued Standard Form 50 (SF-50), Notification of
requirements. Personnel Action, along with paper copies of all military W-2s
that identify that income.
your military Form W-2 to your Form IL-1040.
What military pay may I subtract?
You may subtract tax-exempt military pay that is in your AGI,
including
pay for duty in the armed forces, including basic training,
pay for duty as a cadet at the U.S. Military, Air Force, and Coast
Guard academies, as a midshipman at the U.S. Naval Academy,
or in ROTC, and
pay for duty for serving in the U.S. Armed Forces Reserves or a
National Guard unit, including a National Guard unit of another
state.
PUB-102 (R-06/22 back page updated) Page 3 of 5
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