It asks about it beacause it is taxable by NC since you are now living in NC.
You may have earned the pension in CO...but all pensions are taxed according to the tax rules of the state you live in when you receive the $$$$.
On the followup screen, Which starts with "Bailey Settlement......." you have to choose None of the above....and the Federally taxable amount is also the NC distribution.
CO has nothing to do with that pension anymore...other the to sen you monthly payments.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
