I'm not sure what "fix" I actually stumbled into, but changing our OPM 1099-R (which was wrong) to a CSA-1099 seemed to help the problem. (The form was identified as 1099-R on the top, but CSA-1099 on the left hand side.)
TSP distributions for the "employee" contributions are Bailey qualified, as long as contributions started by 12 August 1989. That is my interpretation after searching NCDOR for "Bailey Thrift Savings Plan. Since my spouse, as a CSRS employee was not eligible for any government match, he was vested immediately in his employee contributions. Let's hear for the packrats of the world who managed to hold onto original forms from 1989! And also to those of us who never moved money out of TSP, which would have made it Bailey-ineligible.
We have filed Federal and State successfully, and are expected a refund on 25 Feb.
I fully expect NC to ask for copies of the forms supporting our TSP Bailey claim, as they did when we stated claiming the CSRS pension. If I find out we are wrong, I'll circle back with an update.
I hope this helps!
