Federal and State Income Taxes

for IMRF Retirees
Book with coffee

Federal Income Tax

Annual Tax Statement - Form 1099-R

IMRF will send you a 1099-R tax statement every January. This statement shows:

This information should be used for filing your federal and state income tax returns. IMRF will report the taxable amount of your pension on your 1099-R using the method indicated on your Certificate of Benefits.

Your 1099-R statement will be available in your Member Access account before it is mailed to you. You can also view 1099-R statements from earlier years in Member Access.

Filing Federal Taxes

You must use Internal Revenue Service Form 1040 or Form 1040-SR when you file your annual federal tax return.

Federal tax withholding on retirement refunds

Certain types of contributions may be paid as a lump sum at retirement. If you receive a lump sum payout at retirement, you can “roll over” the taxable portion of the refund directly to an IRA or another qualified pension plan.

If you do not directly roll over the taxable portion of the refund, the law requires IMRF to withhold 20% on the following lump sums paid at retirement:

You may apply the 20% to your tax liability for the year in which you received the payment. The actual amount you owe in taxes may be larger or smaller and will vary for individual members.

Are you under age 59-1/2 and continuing to work for your IMRF employer?

If you retire before 1/1/2021 and are under age 59-1/2

If you retire before 1/1/2021, are under age 59-1/2, and plan to continue working for the last IMRF employer you worked for before you retired, you should:

You must totally separate from service to qualify for an exception

Your IMRF pension qualifies for an exception to a 10% early withdrawal tax if you are at least age 55 when you retire (age 50 or with 25 years of service for public safety employees—for this purpose, a police officer, firefighter, emergency medical personnel, corrections officer, or forensic security employee) as long as you have totally separated from service with your last IMRF employer. If you continue to work for this employer in a non- participating position while receiving your pension payments at the same time, you are not eligible for this exception. You must pay the additional 10% early withdrawal tax on your monthly IMRF pension payments. You will be required to pay this additional tax until you reach age 59-1/2 or until you leave employment with your IMRF employer.

IMPORTANT! Change in rules if you retire after 1/1/2021

If you retire after 1/1/2021, you cannot start your pension and continue to work for ANY IMRF employer. Effective 1/1/2021, this violates separation from service rules and you cannot receive your IMRF pension in this situation. See IMRF's Working After Retirement web page for detailed information about these separation of service rules.

State Income Tax

Illinois State Tax

Your IMRF pension is not subject to Illinois state income tax. 

If your state of residence is other than Illinois, you should check with that state’s department of revenue to find out:

IMRF will not withhold state income tax for any state outside of Illinois.

Filing Illinois State Income Tax Returns

You should enter the federally taxed portion of your pension (from your Form 1099-R) as a subtraction on Form IL-1040. This line is designated as retirement and Social Security income.

If you have no other taxable income, the Illinois Department of Revenue requires that you file a return if you are an Illinois resident.

Which state’s taxes are best if you are retired?

Laws covering the taxability of your IMRF Pension vary from state to state. The following list is only to be used as a guide. It is not tax advice. Tax laws are amended constantly and changes should be expected. Several states treat pensions from public employment different than other retirement income. Therefore you should consult with that state’s office or a tax professional for definite information on the tax laws in a particular state.

State Location Phone
Alabama Alabama Department of Revenue
PO Box 327464
Montgomery, AL 36132-7464
(334) 242-1099
Alaska Alaska Department of Revenue
PO box 110420
Juneau, AK 99811-0420
(907) 465-2320
Arizona Arizona Department of Revenue
Taxpayer Information and Assistance
PO Box 29086
Phoenix, AZ 85038-9086
(602) 255-3381
(800) 352-4090
800 number only from area codes 520 and 928
Arkansas Arkansas Dept. of Finance & Admin
PO Box 3628
Little Rock, AR 72203
(501) 682-1100
(800) 882-9275
in Arkansas only
California California Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-0040
(916) 845-6500
(800) 852-5711
Colorado Colorado Department of Revenue
1375 Sherman
Denver, CO 80261
(303) 238-7378
Connecticut Connecticut Dept of Revenue Services
25 Sigourney Street
Hartford, CT 06106-5032
(860) 297-5962
(800) 382-9463
In Connecticut (outside Hartford area)
Delaware Delaware Division of Revenue
Carvel State Office Building
9th & French Streets, First Floor
Wilmington, DE 19801
(302) 577-8200
District of Columbia Dept of Finance & Revenue
300 Indiana Ave N.W.
Washington, DC 20001
(202) 727-4829
Florida Florida Department of Revenue
Taxpayer Services
5050 W Tennessee St Mail Stop 3-2000
Tallahassee, FL 32399-0100
(850) 488-9719
(800) 352-3671
in Florida only
Georgia Department of Revenue
State Revenue Commissioner
1800 Century Center Blvd.,
NE Room 8300
Atlanta, GA 30345
(877) 423-6711
Hawaii Hawaii Dept of Taxation
PO Box 259
Honolulu, HI 96809
(808) 587-4242
Idaho Idaho State Tax Commission
PO Box 36
Boise, ID 83722-0410
(208) 334-7660
(800) 972-7660
Outside the Boise area
Illinois Illinois Department of Revenue
Taxpayer Correspondence, 3-252
101 W Jefferson St
Springfield, IL 62794-9001
(217) 782-3336
(800) 732-8866
Indiana Indiana Dept of Revenue PO Box 7207
Indianapolis, IN 46207-7207
(317) 232-2240
Iowa Iowa Dept of Revenue
Hoover State Off Bldg
1305 E Walnut
Des Moines, IA 50319
(515) 281-3114
(800) 367-3388
Iowa, Omaha, Rock Island, Moline
Kansas Kansas Dept of Revenue
915 SW Harrison St
Topeka, KS 66699-1000
(785) 368-8222
Kentucky Kentucky Department of Revenue
Taxpayer Assistance
PO Box 181 Station 56
Frankfort, KY 40620
(502) 564-4581
Louisiana Louisiana Dept of Revenue
617 North Third Street
Baton Rouge, LA 70802
(225) 219-0102
(855) 307-3893
Maine Maine Revenue Services
P.O. Box 9107
Augusta, ME 04332-9107
(208) 626-8475
Maryland Maryland State Controller's Office
ATTN: Taxpayer Service
110 Carroll Street
Annapolis, MD 21411-0001
(410) 260-7980
(800) 638-2937
Massachusetts Massachusetts Dept of Revenue
PO Box 7010
Boston, MA 02204
(617) 887-6367
(800) 392-6089
Michigan Michigan Dept of Treasury
Revenue Division
Lansing, MI 48922
(517) 636-4486
Minnesota Minnesota Department of Revenue
Mail Station 5510
St Paul, MN 55146-5510
(651) 296-3781
(800) 652-9094
Inside Minnesota
Mississippi State Tax Commission
PO Box 1033
Jackson, MS 39215-1033
(601) 923-7000
Missouri Missouri Department of Revenue
Div of Taxation
PO Box 2200 Jefferson City, MO 65105-2200
(573) 751-3505
Montana Montana Department of Revenue
PO Box 5805
Helena, MT 59604
(406) 444-6900
(866) 859-2254
Nebraska Nebraska Department of Revenue
PO Box 94818
Lincoln, NE 68509
(402) 471-5729
(800) 742-7474
Nebraska and Iowa
Nevada Nevada Department of Taxation
1550 College Parkway, Suite115
Carson City, NV 89706
(775) 684-2000
(866) 962-3707
New Hampshire New Hampshire Dept of Revenue
109 Pleasant Street
Concord, NH 03301
(603) 230-5000
New Jersey New Jersey Taxpayer Services
Div of Taxation PO Box 281
Trenton, NJ 08646-0281
(609) 292-6400
New Mexico New Mexico Taxation and Rev Dept
P.O. Box 5374
Santa Fe, NM 87502-5374
(505) 827-0827
New York New York Dept of Taxation & Finance Taxpayer Assistance Bureau
W. A. Harriman Campus
Albany, NY 12227
(518) 457-5181
North Carolina North Carolina Department of Revenue
PO Box 25000
Raleigh, NC 27640-0640
(877) 252-3052
North Dakota Office of State Tax Commissioner
600 E Boulevard Ave, Dept 127
Bismarck, ND 58505
(701) 328-1247
Ohio Ohio Department of Taxation
Taxpayer Services Division
PO Box 182382
Columbus, OH 43218-2382
(800) 282-1780
Oklahoma Oklahoma Tax Commission
2501 North Lincoln Blvd
Oklahoma City, OK 73194
(405) 521-3160
Oregon Oregon Department of Revenue
955 Center Street NE
Salem, OR 97310-2555
(503) 378-4988
(800) 356-4222
RESTRCT800 (within Oregon only)
Pennsylvania Pennsylvania Department of Revenue
PO Box 280500
Harrisburg, PA 17128-0500
(717) 787-8201
Rhode Island Rhode Island Div of Taxation
One Capitol Hill
Providence, RI 02908-5800
(401) 574-8829
South Carolina South Carolina Dept of Revenue
PO Box 125
Columbia, SC 29210
(803) 898-5000
South Dakota South Dakota Dept of Revenue
445 E Capitol Ave
Pierre, SD 57501-3185
(605) 773-3311
Tennessee Tennessee Department of Revenue
ATTN: Taxpayer Services Div
Andrew Jackson State Office Building
Nashville, TN 37242
(615) 253-0600
(800) 342-1003
Inside Tennessee
Texas Comptroller of Public Accounts
PO Box 135285, Capitol Station
Austin, TX 78711-3528
(888) 434-5464
Utah Tax Commission
210 North 1950 West
Salt Lake City, UT 84134
(801) 297-2200
(800) 662-4335
Vermont Department of Taxes
133 State St
Montpelier, VT 05633-1401
(802) 828-2865
(866) 828-2865
toll free in Vermont
Virginia Department of Taxation
Office of Customer Service
PO Box 1115
Richmond, VA 23218-1115
(804) 367-8031
Washington Department of Revenue
414 General Admin Bldg
Olympia, WA 98504
(800) 647-7706
West Virginia Tax Payer's Services Div
PO Box 2389
Charleston, WV 25328
(304) 558-3333
(800) 982-8297
Wisconsin Department of Revenue
PO Box 8949
Madison, WI 53708-8949
(608) 266-2486
Wyoming Department of Revenue
122 W 25th St, 2nd Floor West
Cheyenne, WY 82002-0110
(307) 777-5200

Form W-4P: Withholding Certificate for Pension Payments

You are required by the Internal Revenue Service to complete Form W-4P and return it to IMRF. The easiest and fastest way to do this is through your Member Access account.

Amount of Withholding

IMRF cannot offer tax advice. If you are not sure how much money should be withheld from your pension payments, you should talk with your tax consultant or visit the IRS website at www.irs.gov and enter the search term "withholding calculator".

Withholding Without Form W-4P

If you do not have withholding instructions on file, IMRF may be required to withhold an amount based upon the IRS tax tables:

If you have additional questions, please talk with your tax consultant.