Is the Bailey tax deduction on my NC teachers retirement automatically taken as my taxes are prepared?

[DawnC0 · Accepted solution]

Yes, but you have to indicate that the 1099-R is for Bailey settlement retirement benefits when you enter it in the Federal interview.  After you enter the 1099-R, TurboTax will ask you ''Where is this distribution from?''.  As long as you select the 'Bailey settlement' radio button, TurboTax will apply the deductions.