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New Member
posted Jun 3, 2019 11:38:11 AM

I'm retired Air Force, served 1981-2003. In North Carolina my military retirement pay is exempt from state tax. Where do I make the adjustment with Turbo Tax?

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1 Best answer
Level 15
Jun 3, 2019 11:38:13 AM

Edit that military 1099-R form, and on one of the pages after the main form...select the "Bailey settlement..." (picture 1)

....and the NC distribution should be the same as the box 2a amount (or the federally taxable amount of box 1, if 2a is empty on your 1099-R)......because that $$ amount is needed to let the NC software know how much to subtract from NC income.

______________________

Note: There is a Question in the NC section about receiving Bailey retirement income on a W-2...you don't go into that...that is for a special situation with a W-2 form..and yours is on a 1099-R form. 

 

_________________________________________

 

1 Replies
Level 15
Jun 3, 2019 11:38:13 AM

Edit that military 1099-R form, and on one of the pages after the main form...select the "Bailey settlement..." (picture 1)

....and the NC distribution should be the same as the box 2a amount (or the federally taxable amount of box 1, if 2a is empty on your 1099-R)......because that $$ amount is needed to let the NC software know how much to subtract from NC income.

______________________

Note: There is a Question in the NC section about receiving Bailey retirement income on a W-2...you don't go into that...that is for a special situation with a W-2 form..and yours is on a 1099-R form. 

 

_________________________________________