Illinois Department of Revenue

Publication 102                                                                                     January 2020

Illinois Filing Requirements for Military Personnel

The information in this publication      About this publication
is current as of the date of the 
publication. Please visit our website at Publication 102, Illinois Filing Requirements for Military Personnel, provides detailed 
                                         information about Illinois Individual Income Tax filing requirements for military 
tax.illinois.gov to verify you have the 
                                         personnel. 
most current revision.
This publication is written in the plain 
                                         The objectives of Publication 102 are to 
English style so the tax information is 
easier to understand. As a result, we      explain if military personnel are Illinois residents, part-year residents, or          
                                           nonresidents.
do not directly quote Illinois statutes 
and the Illinois Administrative Code.      explain the options for filing a joint Illinois return. 
The contents of this publication are       clarify which military personnel are required to file an Illinois return.
informational only and do not take         explain what military income is taxed in Illinois.
the place of statutes, rules, and court    explain which forms military personnel should use.
decisions. For many topics covered         explain how military spouses should report their civilian wages. 
in this publication, we have provided 
a reference to the applicable section 
or part of the Illinois Administrative 
Code for further clarification or more 
detail. All of the sections and parts 
referenced can be found in Title 86 of 
the Illinois Administrative Code. 

Taxpayer Bill of Rights
You have the right to call the Department of Revenue for help in resolving tax problems.
You have the right to privacy and confidentiality under most tax laws.
You have the right to respond, within specified time periods, to Department notices by asking questions, paying the amount 
due, or providing proof to refute the Department’s findings.
You have the right to appeal Department decisions, in many instances, within specified time periods, by asking for 
Department review, by filing a petition with the Illinois Independent Tax Tribunal, or by filing a complaint in circuit court.
If you have overpaid your taxes, you have the right, within specified time periods, to a credit (or, in some cases, a refund) of 
that overpayment.
For more information about these rights and other Department procedures, you may write us at the following address:
Problems Resolution Division
Illinois Department of Revenue
PO Box 19014
Springfield, IL  62794-9014

Get forms and other information faster and easier at tax.illinois.gov

                                                                                                        Illinois Filing Requirements for 
Contents                                                                                                Military Personnel
General Information
          Am I an Illinois resident?  ..........................................................................................................................................................2
          Am I a part-year resident of Illinois? .........................................................................................................................................2
          Am I a nonresident of Illinois?  ..................................................................................................................................................2
          What are my options for filing a joint return with my spouse?  ..................................................................................................2
          Must I file an Illinois return?  .....................................................................................................................................................3
          How do I report my military pay?  ..............................................................................................................................................3
          What military pay may I subtract?  ............................................................................................................................................3
          What military pay may I not subtract?  ......................................................................................................................................3
          Which form should I use to subtract military pay?  ....................................................................................................................3
          How do military spouses report their civilian wages?  ..............................................................................................................4
          What common mistakes should I avoid making?  .....................................................................................................................4
Office Locations  ...................................................................................................................................................................................5
For Information or Forms  ....................................................................................................................................................................5

General Information 
                                                                         during that year, then you are not a part-year resident of Illinois.  
Am I an Illinois resident?
                                                                         You would be considered a resident of the service member’s 
You are an Illinois resident if you reside in Illinois or have a legal   state of residency for the entire tax year in which the marriage 
domicile in Illinois but are absent for a temporary purpose during the   occurred.
tax year. 
A domicile is the place where you reside and the place where you 
intend to return after temporary absences. Temporary absences            Am I a nonresident of Illinois? 
include performing active duty in the armed forces while being 
stationed outside the state, even for considerable periods of time.      If you are a resident of another state and come to Illinois only 
                                                                         because of a military assignment, you will remain a nonresident of 
If you are a member of the armed forces, you are not a resident          Illinois regardless of how long you are in Illinois unless you elect to 
of Illinois if you are present in Illinois only because of your military become an Illinois resident. 
assignment. If you are a spouse of a service member, you are not 
a resident of Illinois if you are a resident of the same state as your   For tax years 2018 and after, the Veterans Benefits and Transition 
spouse and you are present in Illinois only to accompany your            Act of 2018 allows a military spouse to elect to use the same 
spouse on his or her military assignment. For tax years 2018 and         residence for tax purposes as the service member even if the 
after, the Veterans Benefits and Transition Act of 2018 allows a         spouse is not present in the same state as the service member.  If 
military spouse to elect to use the same residence for tax purposes      you are present in Illinois, but have elected to use your service 
as the service member even if the spouse is not present in the same      member spouse’s residence for tax purposes, you will not be 
state as the service member.  If you are present in Illinois, but have   considered an Illinois resident regardless of how long you are in 
elected to use your service member spouse’s residence for tax            Illinois unless you elect to become an Illinois resident.
purposes, you will not be considered an Illinois resident. In any case,  If you were domiciled in Illinois at the time you joined the armed 
you have the option of remaining a nonresident of Illinois, regardless   forces or elected to change your residence to Illinois after being 
of how long you are present in the state, but you may choose to          stationed here, you will remain an Illinois resident  as long as you 
establish residency in Illinois.                                         remain in the armed forces, unless you elect to become a resident of 
                                                                         another state where you are stationed. 

Am I a part-year resident of Illinois?
                                                                         What are my options for filing a joint return with 
If you are an Illinois resident for only part of the tax year, you will 
be considered a part-year resident. For example, if you changed          my spouse?
your domicile to a location within Illinois during the tax year, you     For tax years 2009 and after, spouses who file a joint federal 
are a part-year resident of Illinois.                                    return may elect to file a joint Illinois return. If you file a joint Illinois 
For tax years 2018 and after, the Veterans Benefits and                  return, and one spouse is an Illinois resident while the other is not, 
Transition Act of 2018 allows a military spouse to elect to use          both spouses must be treated as Illinois residents (or as part-year 
the same residence for tax purposes as the service member                residents for the same period).
even if the spouse is not present in the same state as the service 
member. This election is effective for the entire taxable year 
regardless of the date on which the marriage of the spouse and 
the service member occurred.  If you were an Illinois resident 
for only part of the year, married a  service member and then 
elected to use the service member’s residence for tax purposes 

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                                                                                                                              Illinois Filing Requirements for 
                                                                                                                              Military Personnel
For tax years 2008 and earlier, if you file a joint federal income tax 
return, you are required to file a joint Illinois income tax return if both                          For tax years ending prior to December 31, 2001, you may 
you and your spouse are Illinois residents or nonresidents. If one of                     only subtract compensation paid for active duty. 
you is a resident and the other is not, you may elect to file separate                               For tax years ending prior to December 31, 2007, you may 
Illinois returns or to file a joint return on which you are both treated                  subtract National Guard pay only if you were in the Illinois National 
as Illinois residents (or as part-year residents for the same period).                    Guard.  
For all tax years, you must file separate Illinois returns if you filed                   You may also subtract all income of a person whose federal income 
separate federal returns.                                                                 tax on that income is forgiven because the person died in a combat 
                                                                                          zone or due to wounds, disease, or injury incurred in a combat zone. 
                                                                                                     Residents, part-year residents, and nonresidents, do not 
Must I file an Illinois return?                                                           subtract military pay or other income that is not included in your AGI 
                                                                                          on Form IL-1040, Line 1.  
If you are an Illinois resident or part-year resident, you are 
required to file an Illinois return if
   you are required to file a federal return, or
                                                                                          What military pay may I not subtract?
   your Illinois base income is greater than your Illinois exemption 
  allowance.                                                                              You may not subtract
If you are a nonresident, you must file an Illinois return if you                            military income (such as combat pay) that you excluded from your 
have earned enough taxable income from Illinois sources to have                            AGI on Form IL-1040, Line 1; 
a tax liability (i.e., your Illinois base income from Schedule NR,                           pay you received under the Voluntary Separation Incentive;
Nonresident and Part-Year Resident Computation of Illinois Tax, is                           pay you received from the military as a civilian;
greater than your Illinois exemption allowance from Schedule NR).
                                                                                             payments you made under the Ready Reserve 
                                                                                           Mobilization Income Insurance Program; or
                                                                                             pay for duty as an officer in the Public Health Service. 
How do I report my military pay? 
If you are 
  an Illinois resident, you must file Form IL-1040, Individual                            Which form should I use to subtract military pay? 
  Income Tax Return. Your military pay will generally be            
  included in your federal adjusted gross income (AGI) on                                 For tax years 
  Form IL-1040, Line 1.                                                                      2008 and after, you may subtract military pay on Schedule M, 
  a part-year resident, you must file Form IL-1040 and                                     Other Additions and Subtractions for Individuals. 
  Schedule NR. Your military pay will generally be included in                               2007 and earlier, see the return instructions for the year you are  
  the Illinois portion of your AGI on Schedule NR.                                          filing.       
  On Schedule NR, Step 3, Column B, you must include
     all income earned while a resident regardless of whether                                           If you are a part-year resident or nonresident, you  
                                                                                                may subtract tax-exempt military pay on Schedule NR, Step 4,     
     such income is earned from Illinois sources, and                                            Column B if it is included as income in Step 3, Column B.  
   all income earned from Illinois sources while a                  
     nonresident.                                                                                        If you are an active member of the National Guard 
  a nonresident, you are not required to report military pay                                      and qualify as a Dual Status Technician, attach a copy of your  
  to Illinois. See “Must I file an Illinois return?” for filing                                   most recently issued Standard Form 50  (SF-50), Notification of   
  requirements.                                                                                   Personnel Action, along with paper copies of all military W-2s  
                                                                                                  that identify that income.  
          your military Form W-2 to your Form IL-1040.                                    

What military pay may I subtract? 
You may subtract tax-exempt military pay that is in your AGI, 
including 
   pay for duty in the armed forces, including basic training,
   pay for duty as a cadet at the U.S. Military, Air Force, and Coast 
  Guard academies, as a midshipman at the U.S. Naval Academy, 
  or in ROTC, and
   pay for duty for serving in the U.S. Armed Forces Reserves or a 
  National Guard unit, including a National Guard unit of another 
  state. 

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                                                                          Illinois Filing Requirements for 
                                                                          Military Personnel

How do military spouses report their civilian 
wages? 
Under the Veterans Benefits and Transition Act of 2018, effective for tax 
years 2018 and after, if
   you are a nonresident spouse of a service member, and
   you and your service member spouse have the same domicile 
 and you are in Illinois only to accompany your spouse on his or her  
 military assignment, or
    you elect to use the same domicile as your service member   
 spouse for the purposes of taxation and you are in Illinois, even if  
 your service member spouse is not located in Illinois,
then your employee wages earned in Illinois are not taxable by    
Illinois. If you had Illinois Income Tax withheld from your wages, you  
are entitled to a refund if your wages are exempt from Illinois tax   
under this law. 
To claim your refund 
   for tax years 2010 and after, you must file Form IL-1040          
 and Schedule NR and mark the Military Spouse box on                 
 Schedule NR. 
   for tax year 2009, you must file a 2009 Form IL-1040 and          
 Schedule NR and attach Schedule MR, Military Spouse                 
 Relief.  Please write “Military Spouse” in red ink on the top of   
 the front page of your Form IL-1040. 
To claim exemption from Illinois Income Tax withholding in the future, 
you must provide your employer with a completed Form IL-W-5-NR, 
Employee’s Statement of Nonresidence in Illinois. 
If you are an Illinois resident, your wages are taxable by Illinois 
regardless of where you work. 
  The provisions in the Veterans Benefits and Transition Act of 
2018 allow that for tax years 2018 and after, the spouse of a service 
member may elect to use the same domicile for purposes of taxation 
as the service member. This applies for any applicable year of the 
marriage, regardless of the date on which the marriage of the spouse 
and the service member occurred. 

  The provisions in the Veterans Benefits and Transition Act of 
2018 that exempt wages from tax apply only to spouses of service 
members, not to the service members themselves. 

What common mistakes should I avoid making?
   Illinois does not tax military pay earned by service persons. When 
 completing Schedule M (for 2008 and after) or Schedule NR (for 
 2007 and earlier), you may subtract tax-exempt military pay that is 
 included as income on Form IL-1040 or Schedule NR.     

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                                                                                                        Illinois Filing Requirements for 
                                                                                                        Military Personnel

Office Locations

                                         Suburban North Regional Building
                                         9511 Harrison Street FA 203
                                         Des Plaines, Illinois 60016-1563

200 South Wyman Street
Rockford, Illinois 61101-1237                                                555 West Monroe Street
                                                                             Suite 1100
                                                                             Chicago, Illinois 60661

                                                                             Willard Ice Building
                                                                             101 West Jefferson
                                                                             Springfield, Illinois 62702-5145

15 Executive Drive
Business Center One, Suite 2
Fairview Heights, Illinois 62208-1331

                                    2309 W. Main, Suite 114
                                    Marion, Illinois 62959-1196

Contact Information Visit our website at tax.illinois.gov. For specific phone number and email contacts see our 
                         Contact Us page. 
                    Call us at 1 800 732-8866 or 217 782-3336.
                    Call our TDD (telecommunications device for the deaf) at 1 800 544-5304.
                    Write us at Illinois Department of Revenue, PO Box 19001, Springfield, IL  62794-9001.
                    Call our 24-hour Forms Order Line at 1 800 356-6302. 

PUB-102 (R-06/22 back page updated) Printed by authority of the State of Illinois - Web only, one copy.                   Page  5 of 5