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.