Illinois state tax basis is the Federal Adjusted Gross Income (AGI).
Interest/Divident Income: Interest and Divident income from U.S. government bonds are exempt from State Taxes.
Rent Income: Same as federal.
Capital Gain: The Capital Gains are treated similar to Federal Taxes for State Taxes.
Unemployment Income: Same as federal.
Social Security Benefits: All social security income is exempt from state taxes.
State Bond Interest: Taxable except certain Illinois obligations.
Health Savings Accounts: Same as federal.
Disability: Same as federal.
Lottery: Same as federal. (No deduction for gambling losses.)
Federal Income Tax: Not deductible.
Other Taxes: Deductions for enterprise zone and high impact business dividends
Check other state tax links below.