TurboTax has not changed this, and still allows Bailey recipients to exclude certain pension income.
Things need to happen in this order:
1. Enter North Carolina as your state of residence in My Info or Personal Info.
2. Enter your 1099-R with the Bailey distribution.
3. On one of the screens shortly after you enter the 1099-R, check off that this is a Bailey distribution (you won't see this screen unless you are a resident of North Carolina).
4. Check the first bullet "Bailey settlement retirement benefits" and fill in the three boxes at the bottom (if they are not already filled in from the 1099-R).
5. Go through your North Carolina interview. You should see a screen (eventually) with the heading "Pension Deduction Summary". Your Bailey Settlement Deduction should be listed here.
Did you do things in a different order?
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