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Level 1
January 24, 2023
Question

If NC State tax rate dropped for the year 2022 and my status hasn’t changed, why was last year’s State return 4 times greater?

  • January 24, 2023
  • 2 replies
  • 32 views
I’m retired military who claims single plus five an additional $140 monthly so they take out the max then I file joint with a child to get max return. Now I’m not even getting back my retired pay which is supposed to be non-taxed now.

2 replies

Employee Tax Expert
January 24, 2023

Please verify that you selected "United States Armed Forces retirement benefits" on the "Where is your distribution from?" screen when you enter your 1099-R in the federal interview:

 

  1. Click on "Search" on the top right and type “1099-R” 
  2. Click on “Jump to 1099-R”
  3. Enter your 1099-R
  4. On the "Where is your distribution from?" screen select "United States Armed Forces retirement benefits"

 

Then during your NC state interview enter the amount on the "Retirement Benefits Received by a Member of the U.S. Armed Forces" screen

 

  1. Click "State" on the left
  2. Start your state return 
  3. Continue through the questions until the "Retirement Benefits Received by a Member of the U.S. Armed Forces​​​​​​​" screen and enter the amount

 

Please be aware we cannot see the details on your return. I would recommend comparing the last year's and this year's returns line by line. Is it possible that you had less withheld this year?

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SteamTrain
Level 15
January 24, 2023

..........make sure your $$ from your Military Retirment 1099-R is being deducted from NC income

 

One of two ways.

 

When you enter your military retirement 1099-R, there is a follow-up page where you have selections to make:

__________________________

_________________________

1)  IF you had to select the US Armend Forces selection, the pension $$ may not be removed immediately....finish all your Federal entries, then go thru the NC interview...there is an area there where it asks about your military retirement $$ and you enter the box 2a value from your 1099-R to remove the $$ from NC income at that point.

 

2)  IF you were eligible to select the Bailey Settlement selection, then the $$ listed in box 2a of the 1099-R are removed from NC income automatically.

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*