@jimb6451
Well, unless you missed X'ing the checkbox for line 4, I'm not sure what the problem is.
Could be a rounding error of some kind.
On your original 1099-R forms, edit them, and try dropping the state distribution amount a tiny bit on the page where you made the Bailey Settlement selection...... by dropping the cents (called truncating) such that only even $$ amounts are reported. State shouldn't complain too much if you happened to not claim a $1 or$2 less as being exempt from state taxation.
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Just make sure your pension $$ are truly Bailey Settlement eligible:
Bailey Decision Concerning Federal, State and Local Retirement Benefits | NCDOR
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
