I DID NOT CORRECTLY IDENTIFY MY 2020 1099-R RETIREMENT AS BAILEY SETTLEMENT

[user19592012]

CAN I DO AN AMENDED RETURN

[JulieS]

Yes, you can amend your 2020 tax return in TurboTax.

If you used TurboTax Online:

1. Log in to your account, scroll down the first page and select 2020, then Amend using TurboTax Online.
2. Follow the directions to start your amendment.
3. Select Federal.
4. Under  Wages & Income, find IRA, 401(k), Pension Plan Withdrawals (1099-R).
5. Select Add/ Edit to the right.
6. Select Edit, to the right of your 1099-R entry.
7. Continue until you  get to Where is your distribution from?
8. Select Bailey settlement retirement benefits.
9. Keep going until you submit your amended tax return

If you used our CD/download product:

1. Open up your return and select “Amend a filed return.”
2. Answer the first few questions, then select your reason for amending.
3. Select Federal.
4. Under  Wages & Income, find IRA, 401(k), Pension Plan Withdrawals (1099-R).
5. Select Add/ Edit to the right.
6. Select Edit, to the right of your 1099-R entry.
7. Continue until you  get to Where is your distribution from?
8. Select Bailey settlement retirement benefits.
9. Keep going until you submit your amended tax return

[user19592012]

Julie,

Thanks for the response.  However, I tried that, even tried it again with the Turbo Tax folks on the phone with me, and it didn't make any difference.  i.e. it didn't give me any refund on my NC taxes.  

Karen

[DaveF1006]

Karen, after you enter this information in the federal return and indicate that this is a Bailey Settlement, you must go to the state return and make sure the full amount of the distribution is entered as a deduction.  Here is what the screen looks like in the state interview.

@user19592012

[user19592012]

DAVE,

Thank you for trying to help resolve my problem.  I think I may have gotten the information corrected, because it does now show a Federal and State refund.  However,  I'm still not sure if it's 100% correct.  Where in all the supporting documents of my tax return could I check to see if my retirement (1099-R annuity) is listed as be excluded from the taxes I owe for the state of NC. (due to the Bailey Settlement)??  Thank you.  

[DawnC]

You can look at Line 9 of Form D-400 (NC tax return) to see the total of all your NC state deductions.    This amount is subtracted from your federal adjusted gross income (agi) to arrive at your NC taxable income.   Schedule S (Supplemental) will show the details of the total deduction number.   The Bailey settlement deduction is on Line 19 of Schedule S.  

[user19592012]

Dawn,

Thank you.  I thought I was looking at the right lines.  My D-400 line #9 still says $0 and so does line #21 on Schedule S...(Bailey Settlement).  Guess I will tackle this again tomorrow.  Thank you.

Karen

[DawnC]

Karen, I missed that you are amending 2020....    As you pointed out, on the 2020 NC return, total deductions are on Line 9 of D-400 and the Bailey settlement portion on Line 21 of the 2020 Schedule S.   There is also a Retirement Benefits Worksheet (Retire Ben Wks) where you should see the deduction -  Line 4.   You should see the federal taxable amount and the NC deduction on Line 4 there.   

Since you are amending 2020, you should see the tax changes on your D-400 AM (Amended Schedule). 

[user19592012]

Dawn,

I found the retirement benefits worksheet on my amended return, but it's not correctly showing a "B" beside of my retirement income for Bailey Settlement and Line 4 is showing $0...still don't think this is plugging into the forms correctly, even though I have gone back through the Federal section several times to make sure I correctly checked the Bailey Settlement box in the 1099-R info

[DaveF1006]

Actually look at your North Carolina state return forms and check to see if you have a D-400 Sch S. if so,  look on line 20 to see if you received a deduction for the amount of your Bailey Distribution. Also this deduction should appear in line 9 on your D-400 of your North Carolina return.

@user19592012

[SteamTrain]

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@user19592012 wrote:

Dawn,

I found the retirement benefits worksheet on my amended return, but it's not correctly showing a "B" beside of my retirement income for Bailey Settlement and Line 4 is showing $0...still don't think this is plugging into the forms correctly, even though I have gone back through the Federal section several times to make sure I correctly checked the Bailey Settlement box in the 1099-R info

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When you check the Federal interview follow-up page to make sure the Bailey Settlement button was checked.......what did you have in the "North Carolina Distribution Amount"  ??

IF you left that blank, or a zero...then zero is subtracted from NC income.

You should have the value of box 2a entered in that field (or the Federally-taxable amount of box 1if box 2a is empty or "undetermined" ).   That value is what ends up on line 21 of the Sch S for 2020....once the Bailey radio button has been selected  (and assuming only one of your 1099-R forms qualifies for the Bailey Settlement)

[user19592012]

DAWN,

I appreciate your help, but I can not seem to get this entered correctly on the Amended tax form.  It's still showing $0.  I'm not sure where to find the "Federal interview follow-up page".  I've gone through it several times.  I've also spoken with Turbo Tax representatives by phone several times, and they can't seem to figure it out either.   They keep suggesting either a CPA, or upgrading (paying more) to get "Live".   Note:  I think I did it correctly for my 2021 taxes because I have a dollar value in line 21 on the D-400 S.  So, I'm not sure what's different about 2020 that it won't seem to work?  It's frustrating for sure.

[SteamTrain]

@user19592012 

For the desktop software, the Federal "follow-up" page I'm talking about comes right after the main 1099-R form.....as shown below.  The NC distribution amount has to be entered to be the same $$ as box 2a on the main form.

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