I am a retired military service member residing in North Carolina. Do I have to file a state return?

[will_1sg]

Also, my only income is my retirement pay. Thanks.

[AmyC · Accepted solution]

Maybe. If your gross incomes exceeds the filing requirements, you will need to file a return. See filing requirement chart here. Then you would claim the uniformed service retirement deduction. For full details see NC instructions.

[will_1sg]

Do I deduct the entire taxable amount on my 1099R?

[BillM223 · Accepted solution]

Please see the instructions for line 20 in the NC Instructions.

I suspect that what will happen is when you enter your 1099-R for the pension, that when TurboTax sees that you are a NC resident, that it will ask (right after you enter the 1099-R numbers), it will ask you about the source of the pension (military or not).

Just pay attention to the questions, because I believe that TurboTax will take care of this...