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New Member
posted Apr 12, 2022 7:02:42 AM

Is the allowable US Armed Forces retirement benefit deduction for state taxes the gross distribution amount?

I qualify for the US Armed Forces retirement deduction as I have 28 years served.

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1 Replies
Expert Alumni
Apr 12, 2022 7:13:01 AM

I'm assuming you are in North Carolina?

 

You will use the amount from 2a of Form 1099-R.

 

"The deduction is only allowed to the extent the payments are included in the taxpayer's adjusted gross income." (NCDOR Military retirement)