How do I get the Bailey Retirement deduction on my NC State Return? I've checked the Bailey box on the 1099-R. doesn't seem to work.

[NCperson]

@bcayes where are you looking?  it will NOT affect your federal tax return.  It only impact the NC tax return.

Whatever is in Box 2a of form 1099-R should appear as a deduction on line 9 of the NC tax return. 

[bcayes]

Thanks.  After working with a TurboTax CS agent, I found out that even if you click the “Bailey” box on the Federal 1099R screen, the 1099 amount isn’t applied to the State taxable income until the very end of completing the STATE tax form.  

So….an incorrect state tax amount is shown until the very end of the process.