How can I select the Bailey Act exemption on my North Carolina 2018 Turbotax? There was a form on my 2017 Turbotax called Retirement Benefits Deduction Worksheet.

[BMcCalpin]

The Bailey Exemption is still done the same way as in 2017. To refresh your memory:

• Enter your 1099-R (under Income and Wages on the federal return)
• After you enter the 1099-R, you will be asked some questions - go through them
• If you indicated that you were a resident of North Carolina in My Info or Personal Info, or if NC was in Box 13 on your 1099-R, you should be eventually asked to select your state (you are still in the 1099-R interview).
  
• Check off North Carolina
• The screen that refers to North Carolina (if you have more than one state on the return, you will see a screen for each state) is headed "Where is this distribution from?" and the line below it will refer to North Carolina.
• Check the first bullet "Bailey settlement retirement benefits" and fill in the three boxes at the bottom