Military Retirement Deduction NC

[robertjonesjr6717]

I am filling out my State of North Carolina tax return and I am being told that North Carolin allows a dedication for certain benefits received by a retired military member.  I need assistance to determine if I qualify.  I am a 20 year veteran.

Do I qualify for this deduction?

Beginning in 2021, the following retirement payments received from the United States government that are included in federal income are allowed a deduction on your North Carolina tax return:

* Military retirement payments received by a retired member who served at least 20 years in the military or who was medically retired from the military.

* Payments from the Survivor Benefit Plan to a beneficiary of a retired member who served at least 20 years in the military or who was medically retired from the military.

[JohnW152]

You don’t really provide much information to base a conclusion on, but you state the qualifications for the exclusion correctly.  

If you meet those requirements, you should qualify for the military exclusion on Line 20 of D-400 Schedule S, 2021 N.C. Adjustments for Individuals.  

Note, however, that the deduction doesn’t apply to severance payments received by a member of the Armed Forces who was separated from the military.  

Additionally, you wouldn’t qualify if you were a military retiree who deducted the same retirement income on Line 19 under Bailey v. State of North Carolina. 

See the North Carolina Individual Income Tax Instructions for more information.

[robertjonesjr6717]

John,

Thanks for your response.  I apologize for not being clear in my request.  I am currently filing my state return and came to the point asking if I was a military retiree and had received retirement pay from the Federal government.  If that was the case (I retired with 20 years), I could deduct that military retirement (if it is part of my federal tax return income).  This tax deduction sounds too good to be true, but it, in fact, is true.

I found the following link in another reply on this community site and found the information I needed!  

Again, thanks for responding.  After being retired from the USAF for over 25 years and filling taxes, this is indeed a first.  

Be blessed.

Robert Jones

https://www.ncdor.gov/taxes-forms/individual-income-tax/military-retirement