@kejc4 To research this question, I found this NC DOR article on the State of North Carolina and it's response to COVID actions. There is no mention of being able to defer 2/3 of your 401K withdrawal for COVID reasons. The state tax statute did not conform to the federal mandate.
In my opinion, the entire distribution should have been reported and taxed in 2020 on your North Carolina return. You may need contact your accountant for further action. It is possible you may need to amend your 2020 North Carolina return.
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