Can I fix error with "Your total Bailey retirement benefits deduction cannot exceed"?

Forum|Forum|2 years ago
March 23, 2024
2 replies
32 views

The amount listed in my form is equal to the amount they have in "cannot exceed"

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SteamTrain

Level 15

@barbaratmurray

Well, two possible things:

1) If it is a military retirement 1099-R, you cannot take both the Military Retirment, AND the Bailey retirement deduction. Just one or the other.

2) if it is not a Military 1099-R, then when you enter the 1099-R form in the Federal 1099-R area, make sure you enter the state distribution amount on the follow-up page after the main form with all the boxes....but that NC Distribution amount cannot be greater than the box 2a value

.........or if box 2a is blank, or marked as "Undetermined", the NC distribution entry cannot be greater than the "Federally-Taxable" amount of box 1 on the Federal tax return.

i.e. the NC Distribution....and thus the eventual Bailey deduction cannot be greater than the $$ amount that was included as being taxable income on the Federal 1040 in the first place.

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

barbaratmurrayAuthor

Level 2

THANKS! Mom has a DFAS (Mil) 1099-R that I set to Bailey. Removed that attribute and manually subtracted the amount from the total of 4 sources. No more error!

BIG HELP