Am I required to report tax-exempt dividends on my state income tax return?

InTheWindyCity · #1 (**permalink**) 03-03-2008, 12:01 AM

I was concerned whether or not to report my federally tax-exempt dividends on my Illinois State Income Tax Return?

Eagerly awaiting your answer..! Tks..

TaxGuru · #2 (**permalink**) 03-14-2008, 09:57 AM

What is Illinois Income?
According to Illinois Individual Tax Law, "your Illinois income includes the adjusted gross income amount figured on your federal return, plus any federally tax-exempt income".

Therefore, despite, this amount being non-taxable on the Federal tax return, on the Illinois 1040 Individual Income tax return, it is added back into income as an addition to the Federally Adjusted Income.