I qualify for NC pension distribution (no state tax) under the Bailey settlement, as this apples to federal or NC pensions, how is it denoted on the federal form?

The state return referred to claiming a deduction under miscellaneous on the federal form to achieve repayment of right income. Can I get a clearer explanation?

11322

Expert Alumni

Apr 15, 2024 5:56:15 PM

It is reported in the following manner.

1. Federal

2. Wages and income

3 Retirement Plans and Social Security

3. IRA, 401K, pensions" section

4. Click on Edit/Add

5. Enter your 1099R

6. Be sure "NC" is in the "state ID box as well as a state

7. Answer the next question stating this isn't an IRA

8. The next screen is where you would enter that this is a Bailey Settlement. See screenshot.

The information entered in the federal return will automatically populate to your North Carolina State return.

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I qualify for NC pension distribution (no state tax) under the Bailey settlement, as this apples to federal or NC pensions, how is it denoted on the federal form?