The $$ you enter for the Bailey Retirement Benefits deduction during the NC interview...it cannot exceed the box 2a value of the 1099-R form that you indicated qualified for that deduction in the Federal 1099-R entry section.
.......(or the Federally taxable amount of box 1 if box 2a is empty or Undetermined)
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But I'm extrapolating what you may have done...as I haven't figured out how to get that error to show up....or was this an actual NC efile Rejection notice.
What did you do to resolve it? When I click on the Bailey link, nothing comes up.
In the NC section, I do not believe the "Bailey" menu selection will do anything , UNLESS you already had marked one of your 1099-R forms as being Bailey Settlement eligible in the Federal section....right where you first entered your 1099-R form. GO back and edit the eligible one there, and look for the Bailey selection on one of the pages after the Main 1099-R form entry page.......labelled "Where is This Distribution From?"