@thomasreindl
You should be looking at Line 9 of North Carolina Form D-400. The Bailey income is removed from the Federal Adjusted Gross income; it is not a reduction in "state taxes", so maybe it was removed from the NC tax return, but you are looking in the wrong place????
Line 9 deducts Bailey as well as any of your social security that is taxable (since it is not taxed by NC), so, take whatever is on Line 9, then subtract whatever is on the FEDERAL TAX RETURN on Line 6B (which is the taxable portion of Social Security) and whatever is left over (hopefully!) is your federal pension that is Bailey Eligible!
Please post what you discover!
