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Retirement tax questions
@atm183 - personally, I would not see a professional to get this done, unless they do it for free. it is too easy.
First thing I would do it call NC DOR - they are quite nice and pick up the phone within 1 minute. Explain the situation to them. They know your Federal AGI (they get it from the IRS which is probably what kicked off the letter in the first place).
Ask them what they need to clear up the situation. They may say just send them the 1099-R that shows you are Bailey eligible.
Are you Bailey eligible from a State, County of Local pension in NC...or are you Bailey elgiible due to a federal pension. The State pensions mark the 1099-Rs that are Bailey elgible so there can be no dispute. The federal pensoin 1099-Rs are not so marked so that his a little different.
That could preclude the need for an income tax return (but I am not sure).
Since in the end if you are confident you do not owe any tax (and there are no penalties or interest as it will all be reversed), I would wait until February and go to an AARP or VITA site (what county / city in NC are you in?) and they will do the tax returns for free
Just so we are on the same page, Bailey Eligible are State of NC pensions (including County and local pensions) or federal pensions where the taxpayer work start date was prior to August 12, 1984 (which means the pension vested prior to August 12, 1989.
Were you required to file the federal return in those years? Who did that for you or did you do it yourself?
ps - note from my handle that I am in North Carolina so I am quite familiar with Bailey.