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posted Mar 12, 2024 12:39:41 PM

North Carolina Bailey Deduction

I'm having the same problem with the Bailey deduction on my NC Return check return always takes me back toe line 4 on the Retirement Benefits Wks. I have it entered exactly as suggest in previous posts. Can I override that error?

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1 Replies
Level 15
Mar 12, 2024 5:52:17 PM

We can't really see what you've done, so it's all guesswork.

 

Possibles:

1)  If it is a Military retirement distribution...you cannot claim it BOTH as Bailey Settlement, and then indicate the same amount again as a Military retirement in the NC Q&A.  Just one or the other.

 

2)  The amount claimed as being Bailey Settlement must not be greater than the NC distribution amount for that 1099-R.  That amount is usually the box 2a value of the 1099-R...or....if box 2a is empty or marked "undetermined", then the NC distribution amount must be the same as the Federally taxable amount of box 1...which is usually the same as box 1  (but not always).

 

Beyond those two items, I don't have any guesses as to what you might have entered wrong.