how to apply the bailey act

To apply the Bailey Retirement Deduction, please follow the steps below:

1. Open your federal return.
2. Navigate to your 1099-R.
3. Continue past the data input screen.
4. Continue through the follow-up screens.
5. On the page, Select your State, click the box next to North Carolina.
6. On the page, Where is this distribution from?, select Bailey settlement retirement benefits. Enter the information for distribution amount, withholding, and NC state ID number.
7. Answer the rest of the prompts in the section.
8. Open your North Carolina return.
9. On the page, Here's the income that North Carolina handles differently, select Start next to Bailey Retirement Deduction.
10. Answer the prompts on the screens that follow.
11. Your deduction will be applied to your state return.