Retirement tax questions

@Hassle-Hoff 

FOR NC ONLY !  (if it's for another state, you'll have to tell us which one).

1)  IF you marked the 1099-R as being eligible for the Bailey Settlement, when you entered your DFAS 1099-R in the Federal section.....then you leave it blank, because you are already getting those $$ exempt.

2)  IF you were NOT in service at least 5-years before 12 Aug of 1989, then you are not Bailey Settlement eligible, BUT are now eligible for NC's new US Armed Forces retirement benefit deduction.  You would put the value of box 2a from that DFAS 1099-R into that field. 

(IF, for some reason, box 2a is empty, then it is the federally-taxable portion of box 1....i.e. whatever the Feds include as taxable income )

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.....as long as those $$ are for : "* Military retirement payments received by a retired member who served at least 20 years in the military or who was medically retired from the military."

or
"* Payments from the Survivor Benefit Plan to a beneficiary of a retired member who served at least 20 years in the military or who was medically retired from the military."