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Anonymous asked in Business & FinanceTaxesUnited States · 2 months ago

If I live in Illinois do I have to pay taxes on a private pension that did not withholding taxes taken from it?

2 Answers

  • 2 months ago
    Favorite Answer

    Illinois does not tax pensions, IRA or 401(k) or other retirement plan distributions (at least after 59 1/2), or Social Security. Federal is different of course.

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  • John
    Lv 5
    2 months ago

    Whether a pension is taxable, partly taxable, or non-taxable depends on who paid for the pension.  

    If the employee entirely paid for the pension with post-tax dollars, the pension is not taxable.  If the cost was shared between the employee and the employer, its partially taxable.  If the contributions were paid for entirely by the employer, and/or by pre-tax dollars by the employee, the pension is fully taxable.

    • STEVEN F
      Lv 7
      2 months agoReport

      If the employee funded the account, it IS NOT a pension.

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