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IT DEPENDS:
As long as you had 5 years of service credited before 12 Aug of 1989...then you would qualify for the "Bailey Settlement" .
The procedure is the same in TurboTax every year, so (perhaps) print this out for next year and file it.
____________________________________________________
Go back and edit the 1099-R form in the Federal section.
After you enter your 1099-R form, and "Continue" thru the pages that follow it...until you find the selections for:
1) "Bailey settlement...."....................<<<<you are selecting this one
2) "Faulkenbury settlement...."
3) "Railroad Ret-SS.........."
4) "None of the above"
You need to select the "Bailey Settlement..."
Your NC Distribution amount is the same a box 2a of the 1099-R form (or the calculated federally-taxable amount for box 2a, if 2a is empty)....... that $$ will be removed in the NC section depending on what selection you made above.
(Picture Below)
.....Far fewer retired Military/Fed/State employees can exempt their Pension $$ if they retired this year. BUT...IF you were into your NC-State or Federal/Military pension system, 5 years as of 12 Aug 1989, you can choose the "Bailey Settlement..." and all of that particular 1099-R will be exempted from NC taxation...otherwise you will likely choose "None of the above"
So that 5-years employment by the Feds/Military, or NC-State Gov't-related plan, by 12 Aug 1989 is critical
.......if you weren't employed by the Gov't early enough to meet that deadline...then your Pension distribution is not exempt from NC taxation
IT DEPENDS:
As long as you had 5 years of service credited before 12 Aug of 1989...then you would qualify for the "Bailey Settlement" .
The procedure is the same in TurboTax every year, so (perhaps) print this out for next year and file it.
____________________________________________________
Go back and edit the 1099-R form in the Federal section.
After you enter your 1099-R form, and "Continue" thru the pages that follow it...until you find the selections for:
1) "Bailey settlement...."....................<<<<you are selecting this one
2) "Faulkenbury settlement...."
3) "Railroad Ret-SS.........."
4) "None of the above"
You need to select the "Bailey Settlement..."
Your NC Distribution amount is the same a box 2a of the 1099-R form (or the calculated federally-taxable amount for box 2a, if 2a is empty)....... that $$ will be removed in the NC section depending on what selection you made above.
(Picture Below)
.....Far fewer retired Military/Fed/State employees can exempt their Pension $$ if they retired this year. BUT...IF you were into your NC-State or Federal/Military pension system, 5 years as of 12 Aug 1989, you can choose the "Bailey Settlement..." and all of that particular 1099-R will be exempted from NC taxation...otherwise you will likely choose "None of the above"
So that 5-years employment by the Feds/Military, or NC-State Gov't-related plan, by 12 Aug 1989 is critical
.......if you weren't employed by the Gov't early enough to meet that deadline...then your Pension distribution is not exempt from NC taxation
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