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Returning Member
posted Apr 1, 2025 12:37:44 PM

NC Military Retiree pay and SOURCE of distribution.

In wages and income section.    For a 1099-R input.    TT is asking: "Select the SOURCE of this distribution and enter any other NC information".  My 1099-R draw is from my IRA not my Military retiree pay BUT should I check the BAILEY settlement since I am not charged NC Tax on my retiree pay?  

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1 Best answer
Level 15
Apr 1, 2025 1:22:42 PM

No.  IRA distributions are not eligible for the Bailey Settlement selection.

 

Only your actual DFAS 1099-R, and a DFAS 1099-R is not an IRA.

An IRA is an entirely separate personal account.

 

@Pirate6BR 

 

 

2 Replies
Level 15
Apr 1, 2025 1:22:42 PM

No.  IRA distributions are not eligible for the Bailey Settlement selection.

 

Only your actual DFAS 1099-R, and a DFAS 1099-R is not an IRA.

An IRA is an entirely separate personal account.

 

@Pirate6BR 

 

 

Level 15
Apr 1, 2025 1:30:29 PM

And in the NC Q&A, there will be a question about a Military Retirement subtraction.

 

You don't put in anything there since you a e apparently using the Bailey Settlement.

 

That extra section is ONLY for DFAS Military 1099-R form distributions that do not qualify for the Bailey Settlement.....i.e. any retired Military person who did not have 5yrs of eligible military service before 12 August of 1989.  (which is a more common situation for recent military retirees)