When you are entering your 1099-R, there will be a question that says Where Is This Distribution From?.
There is a checkbox on this screen that says Bailey settlement retirement benefits. Make sure you check that box.
(NC Residents only)
You enter all your 1099-R data as usual in the software.
Then as you step thru the followup pages, you'll come to one where you select the "Bailey Settlement" as the source of those $$. Picture below. but read all the notes I've added.
(Make sure you really are qualified to use it for your Pension $$. Maybe not yourself, but some people are mis-informed about being qualified.. Only those with Military, US Govt pensions, and NC-State Govt/Public-sourced pensions that were in their pension system at least 5 years before 12 Aug of 1989)
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