It is informational only. It is not NC income. The only income that applies to NC is the capital gain. Below is how NC treats it. However, since it was never NC income to begin with, you aren't actually deducting it either.
If your social security or railroad retirement benefits were taxed on your federal return, you may take a deduction for those benefits on your North Carolina individual income tax return. You may take this deduction because this income has already been included as part of your federal adjusted gross income and North Carolina does not tax this income. This deduction will increase your refund or decrease the amount you must pay.
NC SS
