Illinois Income Tax Exclusion for VA Dependency and Indemni…

Illinois Income Tax Exclusion for VA Dependency and Indemnity Compensation

Illinois Department of Revenue

Full exclusion from taxable income

Dependency and Indemnity Compensation, the monthly VA payment to survivors of a service member who died in the line of duty or a veteran whose death resulted from a service-connected injury or disease, is tax free and is not taxed by Illinois.

Check eligibility

How to apply

There is nothing to apply for. Leave your Dependency and Indemnity Compensation payments out of the income you report on your Illinois return.

What you'll need

Your VA award letter showing the Dependency and Indemnity Compensation payments.

Eligibility

You are filing an Illinois income tax return
You receive VA Dependency and Indemnity Compensation

Source

Official source

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