Income Exempt from Tax

              Illinois Department of Revenue
Brian Hamer, Director
Publication 101 December 2007
Income Exempt from Tax
The information in this publication
is current as of the date of the
publication. Please visit our web site at
tax.illinois.gov to verify you have the
most current revision.
This publication is written in the plain
English style so the tax information is
easier to understand. As a result, we
do not directly quote Illinois statutes
and the Illinois Administrative Code.
The contents of this publication are
informational only and do not take
the place of statutes, rules, and court
decisions. For many topics covered
in this publication, we have provided
a reference to the applicable section
or part of the Illinois Administrative
Code for further clarifi cation or more
detail. All of the sections and parts
referenced can be found in Title 86 of
the 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 confi dentiality under most tax laws.
You have the right to respond, within specifi ed time periods, to department notices by asking questions, paying the amount
due, or providing proof to refute the department’s fi ndings.
You have the right to appeal department decisions, in many instances, within specifi ed time periods, by asking for department
review or by taking the issue to court.
If you have overpaid your taxes, you have the right, within specifi ed 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 Offi ce
Illinois Department of Revenue
PO Box 19014
Springfi eld, IL 62794-9014
About this publication
The Constitution, treaties or statutes of the United States, and the Illinois Constitution
exempt certain income from Illinois Income Tax. Illinois law also exempts income of
certain obligations of state and local governments from Illinois Income Tax.
Publication 101, Income Exempt from Tax, provides a quick reference and a brief
explanation of income that is exempt from Illinois Income Tax. The objectives of
Publication 101 are to
identify who is entitled to a subtraction of income exempt from Illinois Income Tax
defi ne income that is exempt from Illinois Income Tax as outlined in the Illinois
Income Tax Rules
identify exceptions
explain how to claim a subtraction of exempt income on your Illinois Income Tax
return
Since this publication is updated on an annual basis, it may not include the latest
changes in the Illinois Income Tax Rules. For more information regarding Illinois
Income Tax exemptions, see the Illinois Income Tax Rules, 86 Illinois Administrative
Code 100.2470. To obtain a copy of these rules, call
1 800 356-6302 or
our TDD-telecommunications device for the deaf at 1 800 544-5304.
Get forms and other information faster and easier at tax.illinois.gov