How do I know if my retirement benefits reported on a W-2 qualify for the Illinois retirement subtraction?

The following retirement benefits are eligible for the Illinois retirement subtraction when reported as wages on a W-2:

• Government retirement and government disability plans
• Group term life insurance premiums paid by a qualified government retirement plan
• State or local government deferred compensation plans

In most cases, you should receive a letter from your retirement provider indicating that the retirement benefits reported as wages on a W-2 are eligible to be subtracted from your Illinois income.